The Hartford 2012 Annual Report Download - page 222

Table of Contents
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

The Debentures rank equally in right of payment and upon liquidation with (i) any indebtedness the terms of which provide that such indebtedness ranks
equally with the Debentures, including guarantees of such indebtedness, (ii) the Company’s existing 8.125% fixed-to-floating rate junior subordinated
debentures due 2068 (the “8.125% Debentures”), (iii) the Company’s Income Capital Obligation Notes due 2067, issuable pursuant to the Junior
Subordinated Indenture, dated as of February 12, 2007, between us and Wilmington Trust Company (the “ICON securities”), (iv) our trade accounts
payable, and (v) any of our indebtedness owed to a person who is our subsidiary or employee.

Long-term debt maturities as of December 31, 2012 are summarized as follows:
2013 $320
2014 200
2015 500
2016 300
2017 825
Thereafter 5,075

On August 4, 2010, The Hartford filed with the Securities and Exchange Commission (the “SEC”) an automatic shelf registration statement (Registration
No. 333-168532) for the potential offering and sale of debt and equity securities. The registration statement allows for the following types of securities to be
offered: debt securities, junior subordinated debt securities, preferred stock, common stock, depositary shares, warrants, stock purchase contracts, and
stock purchase units. In that The Hartford is a well-known seasoned issuer, as defined in Rule 405 under the Securities Act of 1933, the registration statement
went effective immediately upon filing and The Hartford may offer and sell an unlimited amount of securities under the registration statement during the three-
year life of the registration statement.
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The Hartford is party to a put option agreement that provides The Hartford with the right to require the Glen Meadow ABC Trust, a Delaware statutory trust,
at any time and from time to time, to purchase The Hartford’s junior subordinated notes in a maximum aggregate principal amount not to exceed $500. Under
the Put Option Agreement, The Hartford will pay the Glen Meadow ABC Trust premiums on a periodic basis, calculated with respect to the aggregate principal
amount of notes that The Hartford had the right to put to the Glen Meadow ABC Trust for such period. The Hartford has agreed to reimburse the Glen
Meadow ABC Trust for certain fees and ordinary expenses. The Company holds a variable interest in the Glen Meadow ABC Trust where the Company is not
the primary beneficiary. As a result, the Company did not consolidate the Glen Meadow ABC Trust. As of December 31, 2012, The Hartford has not
exercised its right to require Glen Meadow ABC Trust to purchase the notes. As a result, the notes remain a source of capital for the HFSG Holding Company.

The table below details the Company’s short-term debt programs and the applicable balances outstanding.
 




    

The Hartford 11/10/1986 N/A $2,000 $2,000 $ — $ —

4-year revolving credit facility 1/6/2012 1/6/2016 1,750 — — —
5-year revolving credit facility [1] 8/9/2007 8/9/2012 — 1,900 — —

     $ —
[1] Terminated in January 2012.
While the Company’s maximum borrowings available under its commercial paper program are $ 2.0 billion, the Company is dependent upon market
conditions to access short-term financing through the issuance of commercial paper to investors. As of December 31, 2012, the Company has no commercial
paper outstanding.
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