Travelers 2010 Annual Report Download - page 219

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. DEBT
Debt outstanding was as follows:
(at December 31, in millions) 2010 2009
Short-term:
Commercial paper ................................................. $ 100 $ 100
7.22% Real estate non-recourse debt due September 1, 2011 .................. 9—
8.125% Senior notes due April 15, 2010 .................................. —250
7.415% Medium-term notes due August 23, 2010 ........................... —21
7.81% Private placement note due September 16, 2010 ....................... —2
Total short-term debt ............................................. 109 373
Long-term:
7.22% Real estate non-recourse debt due September 1, 2011 .................. —9
7.81% Private placement note due September 16, 2011 ....................... —2
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 .................................... 500 500
3.90% Senior notes due November 1, 2020 ............................... 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
5.35% Senior notes due November 1, 2040 ............................... 750 —
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 .... 115 1,000
Total long-term debt .............................................. 6,519 6,165
Total debt principal ............................................... 6,628 6,538
Unamortized fair value adjustment ..................................... 54 58
Unamortized debt issuance costs ....................................... (71) (69)
Total debt ...................................................... $6,611 $6,527
2010 Debt Issuance—On November 1, 2010, the Company issued $500 million aggregate principal
amount 3.90% senior notes that will mature on November 1, 2020, and $750 million aggregate principal
amount 5.35% senior notes that will mature on November 1, 2040. The net proceeds of these issuances,
after original issuance discount and the deduction of underwriting expenses and commissions and other
expenses, totaled approximately $496 million and $738 million, respectively. Interest on the senior notes
is payable semi-annually in arrears on November 1 and May 1 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 of the remaining scheduled payments of principal and
interest on the senior notes to be redeemed (exclusive of interest accrued to the date of redemption)
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