Progress Energy 2007 Annual Report Download - page 40

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MANAGEMENT’S DISCUSSION AND ANALYSIS
38
•฀ On฀May฀3,฀2006,฀PEF’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”).
•฀ On฀July฀3,฀2006,฀PEF฀paid฀at฀maturity฀$45฀million฀of฀its฀
6.77% Medium-Term Notes, Series B with available
cash on hand.
•฀ On฀November฀1,฀2006,฀Progress฀Capital฀Holdings,฀Inc.,฀
one of our wholly owned subsidiaries, paid at maturity
$60 million of its 7.17% Medium-Term Notes with
available cash on hand.
•฀ On฀November฀27,฀2006,฀Progress฀Energy฀redeemed฀
the entire outstanding $350 million principal amount
of its 6.05% Senior Notes due April 15, 2007, and the
entire outstanding $400 million principal amount of its
5.85% Senior Notes due October 30, 2008, at a make-
whole redemption price. The 6.05% Senior Notes were
acquired at 100.274 percent of par, or approximately
$351 million, plus accrued interest, and the 5.85%
Senior Notes were acquired at 101.610 percent of par,
or approximately $406 million, plus accrued interest.
The redemptions were funded with available cash on
hand and no additional debt was incurred in connection
with the redemptions. See Note 20 for a discussion of
losses on debt redemptions.
•฀ On฀December฀6,฀2006,฀Progress฀Energy฀repurchased,฀
pursuant to a tender offer, $550 million, or 44.0 percent,
of the outstanding aggregate principal amount
of its 7.10% Senior Notes due March 1, 2011, at
108.361 percent of par, or $596 million, plus accrued
interest. The redemption was funded with available
cash on hand, and no additional debt was incurred in
connection with the redemptions. See Note 20 for a
discussion of losses on debt redemptions.
•฀ Progress฀ Energy฀ issued฀ approximately฀ 4.2฀ million฀
shares of common stock resulting in approximately
$185 million in proceeds from its Investor Plus Stock
Purchase Plan and its employee benefit and stock option
plans. Included in these amounts were approximately
1.6 million shares for proceeds of approximately
$70 million to meet the requirements of the Progress
Energy 401(k) Savings & Stock Ownership Plan (401(k))
and the Investor Plus Stock Purchase Plan. For 2006, the
dividends paid on common stock were approximately
$607 million.
2005
•฀ On฀January฀31,฀2005,฀Progress฀Energy฀entered฀into฀
a new $600 million RCA, which was subsequently
terminated on May 16, 2005. In March 2005, Progress
Energy’s $1.1 billion five-year credit facility was
amended to increase the maximum total debt to total
capital ratio from 65 percent to 68 percent. In addition
to the ongoing RCAs, Progress Energy entered into a
new $800 million 364-day credit agreement on November
21, 2005, which was restricted for the retirement of
$800 million of 6.75% Senior Notes due March 1, 2006.
On March 1, 2006, the $800 million of 6.75% Senior Notes
was retired, thus effectively terminating the 364-day
credit agreement.
•฀ PEC฀ issued฀ $300฀ million฀ of฀ First฀ Mortgage฀ Bonds,฀
5.15% Series due 2015; $200 million of First Mortgage
Bonds, 5.70% Series due 2035; and $400 million of
First Mortgage Bonds, 5.25% Series due 2015. PEC
paid at maturity $300 million in 7.50% Senior Notes.
PEC also entered into a new $450 million five-year
RCA with a syndication of financial institutions, which
is scheduled to expire on June 28, 2010, and filed a
shelf registration statement with the SEC to provide
$1.0 billion of capacity, which was declared effective on
December 23, 2005. The shelf registration allows PEC
to issue various securities, including First Mortgage
Bonds, Senior Notes, Debt Securities and Preferred
Stock.
•฀ PEF฀issued฀ $300฀ million฀ in฀ Mortgage฀ Bonds,฀ 4.50%฀
Series due 2010 and $450 million in Series A Floating
Rate Senior Notes due 2008. PEF paid at maturity
$45 million in 6.72% Medium-Term Notes, Series B.
PEF also entered into a new $450 million five-year RCA
with a syndication of financial institutions, which is
scheduled to expire on March 28, 2010, and filed a
shelf registration statement with the SEC to provide
$1.0 billion of capacity, which was declared effective
on December 23, 2005. The shelf registration allows PEF
to issue various securities, including First Mortgage
Bonds, Debt Securities and Preferred Stock.
•฀ Progress฀ Energy฀ issued฀ approximately฀ 4.8฀ million฀
shares of our common stock for approximately
$208 million in net proceeds from its Investor Plus Stock
Purchase Plan and its employee benefit and stock option
plans. Included in these amounts were approximately
4.6 million shares for proceeds of approximately
$199 million to meet the requirements of the 401(k) and
the Investor Plus Stock Purchase Plan. For 2005, the
dividends paid on common stock were approximately
$582 million.