Travelers 2005 Annual Report Download - page 190

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
178
10. DEBT (Continued)
not less than $10 billion at all times. The Company must also maintain a ratio of total consolidated debt to
the sum of total consolidated debt plus consolidated net worth of not greater than 0.40 to 1.00. In addition,
the credit agreement containsother customary restrictive covenants as well as certain customary events of
default, including with respect to a change in control. At December 31, 2005, the Company was in
compliance with these covenants and all other covenants related to its respective debt instruments
outstanding. Pursuant to the terms of the credit agreement, the Company has an option to increase the
credit available under the facility, no more than once a year, up to a maximum facility amount of $1.5
billion, subject to the satisfaction of a ratings requirement and certain other conditions. There was no
amount outstanding under the credit agreement as of December 31, 2005.
Shelf Registration
In December 2005, the Company filed with the Securities and Exchange Commission a shelf
registration statement for the potential offering and sale of securities. The Company may offer these
securities from time to time at prices and on other terms to be determined at the time of offering.