Travelers 2015 Annual Report Download - page 215

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. DEBT
Debt outstanding was as follows:
(at December 31, in millions) 2015 2014
Short-term:
Commercial paper ................................................. $ 100 $ 100
6.25% Senior notes due June 20, 2016 ................................... 400 —
5.50% Senior notes due December 1, 2015 ............................... —400
Total short-term debt ............................................. 500 500
Long-term:
6.25% Senior notes due June 20, 2016 ................................... —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 ............................... 500 500
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 ............................... 750 750
4.60% Senior notes due August 1, 2043 .................................. 500 500
4.30% Senior notes due August 25, 2045 ................................. 400 —
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 .... 107 107
Total long-term debt .............................................. 5,861 5,861
Total debt principal ............................................... 6,361 6,361
Unamortized fair value adjustment ..................................... 49 50
Unamortized debt issuance costs ....................................... (66) (62)
Total debt ...................................................... $6,344 $6,349
2015 Debt Issuance. On August 25, 2015, the Company issued $400 million aggregate principal
amount of 4.30% senior notes that will mature on August 25, 2045. The net proceeds of the issuance,
after original issuance discount and the deduction of underwriting expenses and commissions and other
expenses, totaled approximately $392 million. Interest on the senior notes is payable semi-annually in
arrears on February 25 and August 25, commencing on February 25, 2016. Prior to February 25, 2045,
the senior notes may be redeemed, in whole or in part, at the Company’s option, at any time or from
time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any
senior notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments
of principal and interest on any senior notes to be redeemed (exclusive of interest accrued to the date
of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the then current rate of a treasury security having a maturity
comparable to the remaining term of these senior notes, plus 25 basis points. On or after February 25,
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