Travelers 2003 Annual Report Download - page 124

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122
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. DEBT
Notes payable to former affiliates, long-term debt and convertible notes payable outstanding were as follows:
(
at December 31, in millions
)
2003 2002
Notes payable to former affiliates $ - $ 700.0
Floating rate note due 2004, prepaid February 2003 - 550.0
6.75% Notes due 2006 150.0 150.0
3.75% Notes due 2008 400.0 -
7.81% Notes various due dates through 2011 24.0 27.0
5.00% Notes due 2013 500.0 -
7.75% Notes due 2026 200.0 200.0
6.375% Notes due 2033 500.0 -
4.50% Convertible junior subordinated notes payable due 2032 892.5 892.5
6.00% Convertible notes payable due 2032 49.8 49.7
2,716.3
2,569.2
Debt issuance costs (41.8) (25.5)
Total $ 2,674.5 $ 2,543.7
On April 13, 2001, TIGHI entered into a $500.0 million revolving line of credit agreement (the line of credit)
with Citigroup, which expires in December 2006. On April 16, 2001, TIGHI borrowed $275.0 million on the
line of credit. Proceeds from this borrowing together with $225.0 million of commercial paper proceeds were
used to pay the $500.0 million 6.75% long-term note payable, which was due on April 16, 2001. On November
8, 2001, TIGHI borrowed another $225.0 million under the line of credit. The proceeds were used to pay off
maturing commercial paper. The maturity for all $500.0 million borrowed under this line was extended to
November 7, 2003, and the interest rate was fixed at 3.60%. The weighted average interest rate for the line of
credit was 3.60% and 3.82% for 2002 and 2001, respectively. TIGHI had an additional $250.0 million revolving
line of credit from Citigroup. TIGHI paid a commitment fee to Citigroup for this line of credit, which expires in
2006. This agreement became effective on December 19, 2001 and replaced a previous facility with a syndicate
of banks. Borrowings under this line of credit carry a variable interest rate based upon LIBOR plus 50 basis
points. During December 2002, Travelers borrowed $250.0 million and subsequently repaid $50.0 million under
this line of credit. At December 31, 2002, borrowings outstanding under this line of credit were $200.0 million,
and the weighted average interest rate for these borrowings was 1.87% and 1.92% for 2003 and 2002,
respectively. These lines of credit were repaid during March 2003.