Travelers 2008 Annual Report Download - page 222

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. DEBT
Debt outstanding was as follows:
(at December 31, in millions) 2008 2007
Short-term:
Commercial paper ................................................. $ 100 $ 100
Zero coupon convertible notes, effective yield 4.17%, due March 3, 2009 .......... 140 —
7.81% Private placement notes due September 16, 2009 and 2008 ............... 23
6.38% Medium-term notes due December 15, 2008 ......................... —149
3.75% Senior notes due March 15, 2008 ................................. —400
Total short-term debt ............................................. 242 652
Long-term:
8.125% Senior notes due April 15, 2010 .................................. 250 250
7.415% Medium-term notes due August 23, 2010 ........................... 21 21
7.22% Real estate non-recourse debt due September 1, 2011 .................. 99
7.81% Private placement notes due on various dates through 2011 .............. 46
5.375% Senior notes due June 15, 2012 .................................. 250 250
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 ............................... 450 450
5.80% Senior notes due May 15, 2018 ................................... 500 —
7.75% Senior notes due April 15, 2026 .................................. 200 200
7.625% Junior subordinated debentures due December 15, 2027 ................ 125 125
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 ................................... 800 800
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 1,000
Zero coupon convertible notes, effective yield 4.17%, due March 3, 2009 .......... —134
Total long-term debt .............................................. 5,938 5,574
Total debt principal ............................................... 6,180 6,226
Unamortized fair value adjustment ..................................... 68 83
Unamortized debt issuance costs ....................................... (67) (67)
Total debt ...................................................... $6,181 $6,242
2008 Debt Issuance—In May 2008, the Company issued $500 million aggregate principal amount of
5.80% senior notes that will mature on May 15, 2018. The net proceeds of the issuance, after original
issuance discount and the deduction of underwriting expenses and commissions and other expenses,
totaled approximately $496 million. Interest on the senior notes is payable semi-annually on May 15
and November 15, commencing November 15, 2008. The senior notes are redeemable in whole at any
time or in part from time to time, at the Company’s option, at a redemption price equal to the greater
of (a) 100% of the principal amount of senior notes to be redeemed or (b) the sum of the present
210