Travelers 2009 Annual Report Download - page 227

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. DEBT
Debt outstanding was as follows:
(at December 31, in millions) 2009 2008
Short-term:
Commercial paper ................................................. $ 100 $ 100
8.125% Senior notes due April 15, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 —
7.415% Medium-term notes due August 23, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 —
7.81% Private placement notes due September 16, 2010 and 2009 . . . . . . . . . . . . . . . 22
Zero coupon convertible notes, effective yield 4.17%, due March 3, 2009 . . . . . . . . . . —140
Total short-term debt ............................................. 373 242
Long-term:
8.125% Senior notes due April 15, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —250
7.415% Medium-term notes due August 23, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . —21
7.22% Real estate non-recourse debt due September 1, 2011 . . . . . . . . . . . . . . . . . . 99
7.81% Private placement notes due on various dates through 2011 . . . . . . . . . . . . . . 24
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500 500
5.90% Senior notes due June 2, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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
Total long-term debt .............................................. 6,165 5,938
Total debt principal............................................... 6,538 6,180
Unamortized fair value adjustment ..................................... 58 68
Unamortized debt issuance costs....................................... (69) (67)
Total debt...................................................... $6,527 $6,181
2009 Debt Issuance—On June 2, 2009, the Company issued $500 million aggregate principal
amount of 5.90% senior notes that will mature on June 2, 2019. The net proceeds of the issuance, after
original issuance discount and the deduction of underwriting expenses and commissions and other
expenses, totaled approximately $494 million. Interest on the senior notes is payable semi-annually in
arrears on June 2 and December 2 of each year. 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 values
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