Progress Energy 2007 Annual Report Download - page 39

Progress Energy Annual Report 2007
37
FINANCING ACTIVITIES
Net cash provided (used) by financing activities for the
three years ended December 31, 2007, 2006 and 2005, was
$195 million, $(2.468) billion and $227 million, respectively.
See Note 12 for details of debt and credit facilities.
The increase in net cash provided by financing
activities for 2007 compared to 2006 primarily related to
the issuance of $750 million in long-term debt at PEF and
the $1.7 billion reduction in holding company debt in 2006,
as discussed below.
For 2006, proceeds from sales of discontinued operations
and other assets, net of cash divested, were used to
reduce holding company debt by $1.7 billion. The increase
in cash used in financing activities for 2006 compared to
2005 was primarily related to the retirement of long-term
debt in 2006, as discussed below, and a decrease in the
proceeds from issuances of long-term debt.
2007
•฀ On฀July฀2,฀2007,฀PEF฀paid฀at฀maturity฀$85฀million฀of฀its฀
6.81% Medium-Term Notes with available cash on
hand and commercial paper borrowings.
•฀ On฀August฀15,฀2007,฀due฀to฀extreme฀volatility฀in฀the฀
commercial paper market, Progress Energy borrowed
$400 million under its $1.13 billion revolving credit
agreement (RCA) to repay outstanding commercial
paper. On October 17, 2007, Progress Energy used
$200 million of commercial paper proceeds to repay
a portion of the amount borrowed under the RCA. On
December 17, 2007, Progress Energy used $200 million
of available cash on hand to repay the remaining
amount borrowed under the RCA.
•฀ On฀August฀ 15,฀ 2007,฀due฀ to฀ extreme฀ volatility฀ in฀ the฀
commercial paper market, PEC borrowed $300 million
under its $450 million RCA and paid at maturity
$200 million of its 6.80% First Mortgage Bonds. On
September 17, 2007, PEC used $150 million of available
cash on hand to repay a portion of the amount borrowed
under the RCA. On October 17, 2007, PEC repaid the
remaining $150 million of its RCA loan using available
cash on hand.
•฀ On฀September฀ 18,฀2007,฀ PEF฀ issued฀$500฀ million฀ of฀
First Mortgage Bonds, 6.35% Series due 2037 and
$250 million of First Mortgage Bonds, 5.80% Series due
2017. The proceeds were used to repay PEF’s utility
money pool borrowings and the remainder was placed
in temporary investments for general corporate use
as needed.
•฀ On฀December฀10,฀2007,฀Progress฀Capital฀Holdings,฀Inc.,฀
one of our wholly owned subsidiaries, paid at maturity
$35 million of its 6.75% Medium-Term Notes with
available cash on hand.
•฀ On฀December฀13,฀2007,฀PEF฀led฀a฀shelf฀registration฀
statement with the SEC, which became effective with
the SEC on January 8, 2008. The registration statement
will allow PEF to issue up to $4 billion in first mortgage
bonds, debt securities and preferred stock in addition
to $250 million of previously registered but unsold
securities.
•฀ Progress฀ Energy฀ issued฀ approximately฀ 3.4฀ million฀
shares of common stock resulting in approximately
$151 million in proceeds from its Investor Plus Stock
Purchase Plan and its stock option plan. Included in
these amounts were approximately 1.0 million shares
for proceeds of approximately $46 million to meet the
requirement of the Investor Plus Stock Purchase Plan.
For 2007, the dividends paid on common stock were
approximately $627 million.
2006
•฀ On฀ January฀ 13,฀ 2006,฀ Progress฀ Energy฀ issued฀
$300 million of 5.625% Senior Notes due 2016 and
$100 million of Series A Floating Rate Senior Notes
due 2010. These senior notes are unsecured. The net
proceeds from the sale of these senior notes and a
combination of available cash and commercial paper
proceeds were used to retire the $800 million aggregate
principal amount of our 6.75% Senior Notes on
March 1, 2006, effectively terminating our $800 million
364-day credit agreement as discussed below.
•฀ On฀March฀31,฀2006,฀Progress฀Energy,฀as฀a฀well-known฀
seasoned issuer, filed a shelf registration statement
with the SEC, which became effective upon filing with
the SEC. Progress Energy’s board of directors has
authorized the issuance and sale by the Parent of up
to $1.679 billion aggregate principal amount of various
securities (See “Credit Facilities and Registration
Statements”).
•฀ On฀ May฀ 3,฀ 2006,฀ Progress฀ Energy฀ restructured฀ its฀
existing $1.13 billion five-year RCA with a syndication
of financial institutions. The new RCA is scheduled
to expire on May 3, 2011, and replaced an existing
$1.13 billion five-year facility, which was terminated
effective May 3, 2006 (See “Credit Facilities and
Registration Statements”).
•฀ On฀ May฀ 3,฀ 2006,฀ PEC’s฀ ve-year฀ $450฀ million฀ RCA฀
was amended to take advantage of favorable market
conditions and reduce the pricing associated with
the facility (See “Credit Facilities and Registration
Statements”).