| Debt |
12. Debt Short-Term Debt The components of short-term debt were as follows: | | | | | | | | | | | | | | | | | September 30, 2026 | | | | | | | | | | Short-term debt | Obligor/Applicant | | Financing structure | | Maturity | | Capacity | | outstanding | | | | | | | | (in millions) | Principal Life | | Credit facility (1) | | September 2031 | | $ | 900.0 | | $ | — | Principal Life | | Commercial paper (1) | | | | | | | | 149.6 | Principal CLO warehouse | | Secured CLO borrowings | | August 2027 | | | 80.0 | | | 28.0 | Total short-term debt | | | | | | | | | $ | 177.6 |
| | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | Short-term debt | Obligor/Applicant | | Financing structure | | Maturity | | Capacity | | outstanding | | | | | | | | (in millions) | Principal Life | | Credit facility (1) | | October 2027 | | $ | 800.0 | | $ | — | Principal Compañía de Seguros de Vida Chile S.A. | | Unsecured lines of credit | | | | | 85.6 | | | 24.8 | Principal International de Chile S.A. | | Unsecured lines of credit | | | | | 24.1 | | | 2.9 | Total short-term debt | | | | | | | | | $ | 27.7 |
(1) | Our revolving credit facility is committed and available for general corporate purposes. This credit facility also provides a back-stop support for our commercial paper program. |
In connection with the formation of certain CLOs, we sponsor special purpose entities that acquire senior secured leveraged loans. These acquisitions are funded through equity contributions from wholly owned subsidiaries and borrowings under short-term warehouse credit facilities. The warehouse borrowings are considered non-recourse to us and are generally repaid upon the closing of the related CLO transactions. The weighted‑average interest rate on short-term borrowings as of September 30, 2026 and December 31, 2025, was 4.8% and 6.3%, respectively. Long-Term Debt The components of long-term debt were as follows: | | | | | | | | | | | | September 30, 2026 | | | | | | Net | | | | | | | | | unamortized | | | | | | | | | discount, | | | | | | | | | premium and | | | | | | | | | debt issuance | | Carrying | | | Principal | | cost | | amount | | | | (in millions) | 3.1% notes payable, due 2026 | | $ | 350.0 | | $ | — | | $ | 350.0 | 4.111% notes payable, due 2028 | | | 400.0 | | | (6.4) | | | 393.6 | 3.7% notes payable, due 2029 | | | 500.0 | | | (1.9) | | | 498.1 | 2.125% notes payable, due 2030 | | | 600.0 | | | (2.0) | | | 598.0 | 5.375% notes payable, due 2033 | | | 400.0 | | | (2.9) | | | 397.1 | 6.05% notes payable, due 2036 | | | 505.6 | | | (1.8) | | | 503.8 | 5.3% notes payable, due 2037 | | | 400.0 | | | (4.9) | | | 395.1 | 4.625% notes payable, due 2042 | | | 300.0 | | | (2.6) | | | 297.4 | 4.35% notes payable, due 2043 | | | 300.0 | | | (2.6) | | | 297.4 | 4.3% notes payable, due 2046 | | | 300.0 | | | (2.8) | | | 297.2 | 5.5% notes payable, due 2053 | | | 300.0 | | | (4.2) | | | 295.8 | Non-recourse mortgages and notes payable | | | 2.9 | | | (0.2) | | | 2.7 | Total long-term debt | | $ | 4,358.5 | | $ | (32.3) | | $ | 4,326.2 |
| | | | | | | | | | | | December 31, 2025 | | | | | | Net | | | | | | | | | unamortized | | | | | | | | | discount, | | | | | | | | | premium and | | | | | | | | | debt issuance | | Carrying | | | Principal | | cost | | amount | | | | (in millions) | 3.1% notes payable, due 2026 | | $ | 350.0 | | $ | (0.4) | | $ | 349.6 | 4.111% notes payable, due 2028 | | | 400.0 | | | (9.8) | | | 390.2 | 3.7% notes payable, due 2029 | | | 500.0 | | | (2.5) | | | 497.5 | 2.125% notes payable, due 2030 | | | 600.0 | | | (2.2) | | | 597.8 | 5.375% notes payable, due 2033 | | | 400.0 | | | (3.1) | | | 396.9 | 6.05% notes payable, due 2036 | | | 505.6 | | | (1.9) | | | 503.7 | 4.625% notes payable, due 2042 | | | 300.0 | | | (2.6) | | | 297.4 | 4.35% notes payable, due 2043 | | | 300.0 | | | (2.6) | | | 297.4 | 4.3% notes payable, due 2046 | | | 300.0 | | | (2.8) | | | 297.2 | 5.5% notes payable, due 2053 | | | 300.0 | | | (4.2) | | | 295.8 | Non-recourse mortgages and notes payable | | | 2.9 | | | (0.1) | | | 2.8 | Total long-term debt | | $ | 3,958.5 | | $ | (32.2) | | $ | 3,926.3 |
Net discount, premium and issuance costs associated with issuing these notes are amortized to expense over the respective terms using the interest method. On May 27, 2026, we issued $400.0 million of senior notes that bear interest at 5.3% and will mature in 2037. Interest on the notes is payable semi-annually on January 15 and July 15 each year, beginning on January 15, 2027. The proceeds from these notes will be used for general corporate purposes, which may include repayment, redemption or refinancing of existing indebtedness.
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