Progress Energy 2007 Annual Report Download - page 63

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Progress Energy Annual Report 2007
61
(dollars in millions)
December 31, 2007 2008 2009 2010 2011 2012 Thereafter Total
Fair Value
December 31,
2007
Fixed-rate long-term debt $427 $400 $306 $1,000 $950 $4,865 $7,948 $8,192
Average interest rate 6.67% 5.95% 4.53% 6.96% 6.67% 6.03% 6.20%
Variable-rate long-term debt $450 –$100 – – $861 $1,411 $1,411
Average interest rate 5.27% –5.69% – – 4.45% 4.80%
Debt to affiliated trust(a) – – – – – $309 $309 $294
Interest rate – – – – – 7.10% 7.10%
Interest rate derivatives
Interest rate forward contracts(b) $200 – – – – – $200 $(12)
Average pay rate 5.41% –––––5.41%
Average receive rate (c) –––––(c)
(a) FPC Capital I – Quarterly Income Preferred Securities.
(b) $100 million is for anticipated 10-year debt issue hedge maturing on April 1, 2018, and requires mandatory cash settlement on April 1, 2008. The remaining
$100 million is for anticipated 30-year debt issue hedge maturing on April 1, 2038, and requires mandatory cash settlement on April 1, 2008.
(c) Rate is 3-month London Inter Bank Offering Rate (LIBOR), which was 4.70% at December 31, 2007.
(dollars in millions)
December 31, 2006 2007 2008 2009 2010 2011 Thereafter Total
Fair Value
December 31,
2006
Fixed-rate long-term debt $324 $427 $400 $306 $1,000 $5,065 $7,522 $7,820
Average interest rate 6.79% 6.67% 5.95% 4.53% 6.96% 6.13% 6.23%
Variable-rate long-term debt –$450 –$100 – $861 $1,411 $1,411
Average interest rate –5.77% –5.82% –3.62% 4.47%
Debt to affiliated trust(a) – – – – – $309 $309 $312
Interest rate – – – – – 7.10% 7.10%
Interest rate derivatives
Pay variable/receive fixed – – – – $(50) –$(50) $(1)
Average pay rate – – – – (b) –(b)
Average receive rate – – – – 4.65% –4.65%
Interest rate forward contracts(c) $100 – – – – – $100 $(2)
Average pay rate 5.61% – – – – – 5.61%
Average receive rate (b) – – – – – (b)
(a) FPC Capital I – Quarterly Income Preferred Securities.
(b) Rate is 3-month LIBOR, which was 5.36% at December 31, 2006.
(c) Anticipated 10-year debt issue hedges matured on October 1, 2017, and required mandatory cash settlement on October 1, 2007.
entered into $100 million notional of forward starting
swaps to mitigate exposure to interest rate risk in
anticipation of future debt issuances. On September 25,
2007, PEC amended its 10-year forward starting swap in
order to move the maturity date from October 1, 2017, to
April 1, 2018.
On January 8, 2008, PEF entered into a combined
$200 million notional of forward starting swaps to
mitigate exposure to interest rate risk in anticipation of
future debt issuances.
On November 7, 2006, Progress Energy commenced a
tender offer for up to $550 million aggregate principal
amount of its 2011 and 2012 senior notes. Subsequently, we
executed a total notional amount of $550 million of reverse
treasury locks to reduce exposure to changes in cash
flow due to fluctuating interest rates, which were then