Travelers 2004 Annual Report Download - page 171

THE ST. PAUL TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
10. DEBT
Debt and convertible notes payable outstanding were as follows:
(at December 31, in millions) 2004 2003
Short-term:
Commercial paper* ................................................................ $ 499 $—
7.875% Senior notes due April 15, 2005* ............................................... 238 —
7.125% Senior notes due June 1, 2005* ................................................. 79 —
Medium-term notes maturing in 2005* ................................................. 99 —
Total short-term debt ........................................................... 915 —
Long-term:
Medium-term notes with various maturities from 2006 to 2010* ............................. 298 —
6.75% Senior notes due November 15, 2006 ............................................. 150 150
5.75% Senior notes due March 15, 2007* ............................................... 500 —
5.25% Senior notes due August 16, 2007* .............................................. 442 —
3.75% Senior notes due March 15, 2008 ................................................ 400 400
4.22% Nuveen Investments’ third-party debt due 2008* .................................... 305 —
4.50% Zero coupon convertible notes due 2009* ......................................... 117 —
8.125% Senior notes due April 15, 2010* ............................................... 250 —
7.81% Private placement notes due on various dates through 2011 ........................... 20 24
5.00% Senior notes due March 15, 2013 ................................................ 500 500
7.75% Senior notes due April 15, 2026 ................................................. 200 200
7.625% Subordinated debentures due December 15, 2027* ................................. 125 —
8.47% Subordinated debentures due January 10, 2027* .................................... 81 —
4.50% Convertible junior subordinated notes payable due April 15, 2032 ...................... 893 893
6.00% Convertible notes payable due December 31, 2032 .................................. —50
6.375% Senior notes due March 15, 2033 ............................................... 500 500
8.50% Subordinated debentures due December 15, 2045* .................................. 56 —
8.312% Subordinated debentures due July 1, 2046* ....................................... 73 —
7.60% Subordinated debentures due October 15, 2050* .................................... 593 —
Total long-term debt ............................................................ 5,503 2,717
Total debt principal ............................................................. 6,418 2,717
Unamortized fair value adjustment .................................................... 245 —
Unamortized debt issuance costs ...................................................... (39) (42)
Total debt .................................................................... $6,624 $2,675
* Debt instrument acquired in merger.
On April 1, 2004, The St. Paul Travelers Companies, Inc. fully and unconditionally guaranteed the payment
of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries TPC and TIGHI. The
guarantees pertain to the $150 million 6.75% Notes due 2006, the $400 million 3.75% Notes due 2008, the $500
million 5.00% Notes due 2013, the $200 million 7.75% Notes due 2026, the $893 million 4.5% Convertible
Notes due 2032 and the $500 million 6.375% Notes due 2033.
The Company’s consolidated balance sheet includes the debt instruments acquired in the merger, which
were recorded at fair value as of the acquisition date. The resulting fair value adjustment is being amortized over
the remaining life of the respective debt instruments using the effective-interest method. The amortization of the
fair value adjustment reduced interest expense by $56 million for the year ended December 31, 2004.
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