Ameriprise 2005 Annual Report Download - page 81

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79
Ameriprise Financial, Inc. |
The assets and liabilities associated with discontinued operations included in the Company’s Consolidated Balance Sheet as of
December 31, 2004 consisted of the following:
(in millions)
Assets:
Cash and cash equivalents $54
Investments, at fair value 5,752
Receivables 43
Other assets 24
Total assets $5,873
Liabilities:
Investment certificate reserves $5,501
Payable to American Express 118
Other liabilities 12
Total liabilities $5,631
8. Debt
Debt at December 31 is as follows:
2005 2004
Year-End Year-End
Outstanding Stated Rate Outstanding Stated Rate
Balance on Debt Balance on Debt
(in millions, except percentages)
Senior notes due 2010 $ 800 5.4% $– –%
Senior notes due 2015 700 5.7 ––
Payable to American Express:
Line of credit ––1,068 2.2
Notes due 2007 ––250 3.9
Notes due 2017 ––260 7.9
Medium-term notes due 2006 50 6.6 50 6.6
Fixed rate sale-leaseback financing due 2014 ––18 4.9
Fixed and floating rate notes due 2011:
Floating senior notes 151 5.2 191 3.2
Fixed rate notes 79 8.6 73 8.6
Fixed rate senior notes 46 7.2 46 7.2
Fixed rate notes 7 13.3 713.3
Total $ 1,833 $1,963
On November 23, 2005 the Company issued $1.5 billion of unsecured debt including $800 million of five-year notes which mature
November 15, 2010 and $700 million of 10-year notes which mature November 15, 2015. The five-year notes carry a 5.35% fixed
interest rate and the 10-year notes carry a 5.65% fixed interest rate, with effective interest rates of 4.8% and 5.2%, respectively,
after considering the impact of accounting hedges. Interest payments are due semiannually on May 15 and November 15, and the
Company may redeem the notes, in whole or in part, at any time at its option at the redemption price specified in the prospectus
supplement filed with the SEC on November 22, 2005. The proceeds from the issuance were used to repay the approximately
$1.4 billion balance outstanding on a bridge loan and to provide capital for other general corporate purposes.
On September 30, 2005 the Company obtained an unsecured revolving credit facility for $750 million expiring in September 2010 from
various third-party financial institutions. Under the terms of the credit agreement the Company may increase the amount of this facility
to $1.0 billion and as of December 31, 2005 no borrowings were outstanding under this facility. The Company has agreed under this
credit agreement not to pledge the shares of its principal subsidiaries and was in compliance with this covenant as of December 31,
2005. In addition, a letter of credit was issued against this facility for approximately $0.8 million in December 2005. The letter of credit