Travelers 2006 Annual Report Download - page 206

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
194
7. DEBT
Debt outstanding was as follows:
(at December 31, in millions) 2006 2005
Short-term:
Commercial paper ............................................................ $ 100 $ 104
Medium-term notes maturing in following year ................................... 72 56
5.75% Senior notes dueMarch 15, 2007 ......................................... 500 —
5.01%Senior notesdue August 16,2007......................................... 442 —
6.75% Senior notes due November 15, 2006 ...................................... — 150
Total short-termdebt....................................................... 1,114 310
Long-term:
3.75% Senior notes dueMarch 15, 200 8......................................... 400 400
Zerocoupon convertiblenotes due 2009 ......................................... 128 122
Medium-term notes with various maturitiesfrom 2008 through2010................ 170 242
8.125% Senior notesdue April 15, 2010. ......................................... 250 250
7.81% Private placement notes due on various dates through 2011 .................. 12 16
5.00% Senior notes dueMarch 15, 201 3......................................... 500 500
5.50% Senior notes due December 1, 2015 ....................................... 400 400
6.25% Senior notes dueJune 20,2016 ........................................... 400 —
7.75%Senior notesdue April 15, 2026........................................... 200 200
7.625% Subordinated debentures due December 15,2027.......................... 125 125
8.47% Subordinated debentures dueJa nuary10, 2027............................. 81
81
4.50% Convertible junior subordinatednotes payable due April 15, 2032. ............ 893 893
6.375% Seniornotes dueMarch 15, 2033........................................ 500 500
6.75% Senior notes dueJune 20,2036 ........................................... 400 —
8.50% Subordinated debentures due December 15, 2045........................... 56 56
8.312% Subordinated debentures dueJuly1,2046 ................................ 73
73
7.60% Subordinated debentures dueOctober15, 2050. ............................ — 593
5.75% Senior notes dueMarch 15, 2007 ......................................... — 500
5.01%Senior notesdue August 16,2007......................................... — 442
Total long-term debt........................................................ 4,588 5,393
Total debt principal ......................................................... 5,702 5,703
Unamortized fairvalue adjustment.............................................. 109 185
Unamortized debtissuance costs................................................ (51 )(38)
Total debt................................................................. $5,760 $ 5 ,850
2006 Debt Issuances—In June 2006, the Company issued $400 million aggregate principal amount of
6.25% senior unsecured notes due June 20, 2016 and $400 million aggregate principal amount of 6.75%
senior unsecured notes due June 20, 2036. The notes were issued at a discount, resulting in effective
interest rates of 6.30% and 6.86%, respectively. The notes pay interest semi-annually on June 20 and
December 20 of each year, beginning December 20, 2006, and rank equally with all of the Company’s other
senior unsecured indebtedness. Either series of senior notes is redeemable in whole or in part from time to
time, at the Company’s option, prior to maturity at a redemption price equal to the greater of: 100% of the
principal amount of senior notes to be redeemed; or the sum of the present values of the remaining