Unum 2011 Annual Report Download - page 79

Unum 2011 Annual Report
Unum
2011
77
In 2006, Tailwind Holdings issued $130.0 million floating rate, insured, senior, secured notes, due 2036, in a private offering. Recourse
for the payment of principal, interest, and other amounts due on the notes will be limited to the assets of Tailwind Holdings, consisting
primarily of the stock of its sole subsidiary Tailwind Re, a South Carolina special purpose financial captive insurance company. Tailwind
Holdings’ ability to meet its payment obligations under the notes will be dependent principally upon its receipt of dividends from Tailwind
Re. The ability of Tailwind Re to pay dividends to Tailwind Holdings will depend on its satisfaction of applicable regulatory requirements and
on the performance of the reinsured claims of Unum America reinsured by Tailwind Re. None of Unum Group, Unum America, Tailwind Re
or any other affiliate of Tailwind Holdings is an obligor or guarantor on the notes. The balance outstanding on these notes was $72.5 million
at December 31, 2011.
In 2005, Unum Group repatriated $454.8 million in unremitted foreign earnings from its U.K. subsidiaries, and as part of its repatriation
plan, UnumProvident Finance Company plc, a wholly-owned subsidiary of Unum Group, issued $400.0 million of 6.85% senior debentures,
due 2015, in a private offering. The debentures are fully and unconditionally guaranteed by Unum Group. The aggregate principal amount
outstanding was $296.9 million at December 31, 2011.
In 2002, Unum Group completed two long-term offerings, issuing $250.0 million of 7.375% senior debentures due 2032 and
$150.0 million of 7.25% public income notes due 2032. The public income notes were called and retired in 2007. The 7.375% notes have an
aggregate principal amount outstanding of $39.5 million at December 31, 2011.
In 2001, Unum Group issued $575.0 million of 7.625% senior notes due March 2011. We repaid the remaining $225.1 million of these
notes at the maturity date.
In 1998, Unum Group completed public offerings of $200.0 million of 7.25% senior notes due 2028, $200.0 million of 7.0% senior notes
due 2018, and $250.0 million of 6.75% senior notes due 2028. None of these amounts have been reduced other than the 6.75% notes,
which have an aggregate principal amount outstanding of $165.8 million at December 31, 2011.
In 1998, Provident Financing Trust I (the trust) issued $300.0 million of 7.405% capital securities in a public offering. These capital
securities, which mature in 2038, are fully and unconditionally guaranteed by Unum Group, have a liquidation value of $1,000 per capital
security, and have a mandatory redemption feature under certain circumstances. Unum Group issued 7.405% junior subordinated deferrable
interest debentures, which mature in 2038, to the trust in connection with the capital securities offering. The securities issued by the trust
have an aggregate principal amount outstanding of $226.5 million at December 31, 2011.
Unum Group has medium-term notes with an aggregate principal amount outstanding of $50.8 million at December 31, 2011 which
were initially issued in three separate series in 1990, 1993, and 1996, pursuant to an indenture dated September 15, 1990. The notes are
fixed maturity rate notes with fixed maturity dates ranging between nine months to thirty years from the issuance date.
Interest and Debt Expense
Interest paid on long-term and short-term debt and related securities during 2011, 2010, and 2009, was $145.4 million, $140.7 million,
and $122.0 million, respectively.
Shelf Registration
We have a shelf registration, which we renewed in 2011, with the Securities and Exchange Commission to issue various types of
securities, including common stock, preferred stock, debt securities, depository shares, stock purchase contracts, units and warrants, or
preferred securities of wholly-owned finance trusts. The shelf registration enables us to raise funds from the offering of any securities
covered by the shelf registration as well as any combination thereof, subject to market conditions and our capital needs.
See Note 7 of the “Notes to Consolidated Financial Statements” contained herein for additional information.