NU Online News Service, June 29, 2:02 p.m. – Conseco Inc., Carmel, Ind., says it has borrowed $400 million by issuing public notes paying an annual interest rate of 10.75%.

Conseco used the proceeds and other cash to pay off $478 million borrowed through a short-term bank credit facility, the company says.

Conseco borrowed a total of $2 billion through the credit facility in September 2000 to restructure its debt, according to reports the company filed with the U.S. Securities and Exchange Commission.

The credit facility agreement set detailed rules governing how Conseco could use the proceeds from asset sales and refinancing activities.

Conseco has now completed repaying more than $2 billion in principal and interest owed on the credit facility, the company says.

Conseco came up with the first $1.6 billion in credit facility payments by using cash from operations and selling assets, the company says.