Travelers 2007 Annual Report Download - page 206

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. DEBT
Debt outstanding was as follows:
(at December 31, in millions) 2007 2006
Short-term:
Commercial paper ................................................. $ 100 $ 100
Medium-term notes maturing in following year ............................ 149 72
3.75% Senior notes due March 15, 2008 ................................. 400 —
5.75% Senior notes due March 15, 2007 ................................. —500
5.01% Senior notes due August 16, 2007 ................................. —442
Total short-term debt ............................................. 649 1,114
Long-term:
3.75% Senior notes due March 15, 2008 ................................. —400
Zero coupon convertible notes due 2009 ................................. 134 128
Medium-term notes with maturities in 2010 ............................... 21 170
8.125% Senior notes due April 15, 2010 .................................. 250 250
7.22% Real estate non-recourse debt due September 1, 2011 .................. 9—
7.81% Private placement notes due on various dates through 2011 .............. 912
5.375% Senior notes due June 15, 2012 .................................. 250 —
5.00% Senior notes due March 15, 2013 ................................. 500 500
5.50% Senior notes due December 1, 2015 ............................... 400 400
6.25% Senior notes due June 20, 2016 ................................... 400 400
5.75% Senior notes due December 15, 2017 ............................... 450 —
7.75% Senior notes due April 15, 2026 .................................. 200 200
7.625% Junior subordinated debentures due December 15, 2027 ................ 125 125
8.47% Junior subordinated debentures due January 10, 2027 ................... —81
4.50% Convertible junior subordinated notes payable due April 15, 2032 .......... —893
6.375% Senior notes due March 15, 2033 ................................. 500 500
6.75% Senior notes due June 20, 2036 ................................... 400 400
6.25% Senior notes due June 15, 2037 ................................... 800 —
8.50% Junior subordinated debentures due December 15, 2045 ................. 56 56
8.312% Junior subordinated debentures due July 1, 2046 ..................... 73 73
6.25% Fixed-to-floating rate junior subordinated debentures due March 15, 2067 .... 1,000 —
Total long-term debt .............................................. 5,577 4,588
Total debt principal ............................................... 6,226 5,702
Unamortized fair value adjustment ..................................... 83 109
Unamortized debt issuance costs ....................................... (67) (51)
Total debt ...................................................... $6,242 $5,760
2007 Debt Issuances—In March 2007, the Company issued $1 billion aggregate principal amount of
6.25% fixed-to-floating rate junior subordinated debentures due March 15, 2067 for net proceeds of
$986 million (after original issue discount and the deduction of underwriting expenses and commissions
and other expenses). The debentures were issued at a discount, resulting in an effective interest rate of
6.447%. The debentures bear interest at an annual rate of 6.25% from the date of issuance to, but
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