FINANCING

Notes and debentures were composed of the following at September 6, 2014 and December 28, 2013 (in millions):



	September 6, 2014			December 28, 2013
Commercial paper	$	—		$	—
Bank credit agreement, unsecured	—			—
Term credit agreement, unsecured	—			400.0
Mortgage notes payable, secured	4.9			46.8
5.625% Senior Notes due August 2014, unsecured	—			250.0
3.40% Senior Notes due 2016, unsecured (See Note N)	80.0			400.0
6.35% Senior Notes due 2017, unsecured (See Note N)	100.0			500.0
5.00% Senior Notes due 2019, unsecured (See Note N)	500.0			500.0
3.95% Senior Notes due 2020, unsecured	500.0			500.0
4.75% Senior Notes due 2021, unsecured	400.0			400.0
7.45% Senior Debentures due 2027, unsecured	150.0			150.0
7.25% Senior Debentures due 2031, unsecured	600.0			600.0
Other notes payable, unsecured	21.7			21.4
	$	2,356.6		$	3,768.2
Less current maturities	(1.8		)	(252.9		)
Long-term portion	$	2,354.8		$	3,515.3

In August 2014, Safeway paid $802.7 million to redeem $320.0 million of the 3.40% Senior Notes due 2016 and $400.0 million of the 6.35% Senior Notes due 2017. The $802.7 million included principal payments of $720.0 million, make-whole premiums of $80.2 million and accrued interest of $2.5 million. Unamortized deferred finance fees of $2.2 million were also expensed.

In accordance with the Merger Agreement, the Company contributed $40.0 million in cash to PDC in the second quarter of 2014. This cash was to be held in a reserve account until the earlier to occur of (i) payment in full of the mortgage indebtedness encumbering a shopping center in Lahaina, Hawaii and (ii) the release of the Company from any guaranty obligations in connection with such indebtedness. During the third quarter of 2014, the Company deposited $40.0 million with a trustee and achieved a full legal defeasance of the mortgage indebtedness and was released from the guaranty obligations associated with such indebtedness. Therefore, during the third quarter of 2014, the Company extinguished the $40.8 million mortgage from the condensed consolidated balance sheet. Additionally, Safeway paid $1.8 million in third-party costs and wrote off $0.2 million of unamortized deferred finance fees.

These transactions resulted in a loss on extinguishment of debt of $84.4 million in the third quarter of 2014, which consisted of $80.2 million in make-whole premiums on the Senior Notes, the write-off of $2.4 million of unamortized deferred finance fees and $1.8 million of third-party costs associated with the defeasance of the Lahaina mortgage.