Progress Energy 2008 Annual Report Download - page 29

Progress Energy Annual Report 2008
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due April 1, 2008, and the remainder was placed in
temporary investments for general corporate use as
needed.
• On April 14, 2008, the Parent amended its RCA with
a syndication of financial institutions to extend the
termination date by one year. The extension was
effective on May 2, 2008. The RCA is now scheduled
to expire on May 3, 2012 (See “Credit Facilities and
Registration Statements”).
• OnMay27,2008,ProgressCapitalHoldings,Inc.,one
of our wholly owned subsidiaries, paid at maturity its
remaining outstanding debt of $45 million of 6.46%
Medium-Term Notes with available cash on hand.
• On June 18, 2008, PEF issued $500 million of First
Mortgage Bonds, 5.65% Series due 2018 and
$1.000 billion of First Mortgage Bonds, 6.40% Series
due 2038. A portion of the proceeds was used to repay
PEF’s utility money pool borrowings, and the remaining
proceeds were placed in temporary investments for
general corporate use as needed. On August 14, 2008,
PEF redeemed the entire outstanding $450 million
principal amount of its Series A Floating Rate Notes due
November 14, 2008, at 100 percent of par plus accrued
interest. The redemption was funded with a portion of
the proceeds from the June 18, 2008 debt issuance.
• OnNovember3,2008,theParentborrowed$600million
under its RCA to reduce rollover risk in the commercial
paper markets. A portion of the RCA borrowings
was repaid with proceeds from the January 2009
equity issuance, and we will continue to monitor the
commercial paper and short-term credit markets to
determine when to repay the remaining balance of
the RCA loan, while maintaining an appropriate level
of liquidity.
• On November 18, 2008, the Parent, as a well-known
seasoned issuer, PEC and PEF filed a combined shelf
registration statement with the SEC, which became
effective upon filing with the SEC. The registration
statement is effective for three years and does not
limit the amount or number of various securities that
can be issued (See “Credit Facilities and Registration
Statements”).
• ProgressEnergyissuedapproximately3.7millionshares
of common stock resulting in approximately $132 million
in proceeds from its Investor Plus Stock Purchase
Plan and its employee benefit and equity incentive
plans. Included in these amounts were approximately
3.1 million shares for proceeds of approximately
$131 million issued for the Progress Energy 401(k)
Savings and Stock Ownership Plan (401(k)) and the
Investor Plus Stock Purchase Plan. For 2008, the
dividends paid on common stock were approximately
$642 million.
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 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.
• Progress Energy issued approximately 3.7 million
shares of common stock resulting in approximately
$151 million in proceeds from its Investor Plus Stock
Purchase Plan and its equity incentive plans. Included
in these amounts were approximately 1.0 million shares
for proceeds of approximately $46 million issued for
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