Capital One 2000 Annual Report Download - page 55

In October 1999, the Bank entered into a £750,000 revolving
credit facility collateralized by a security interest in certain consumer
loan assets of the Company. Interest on the facility is based on com-
mercial paper rates or London InterBank Offering Rates ("LIBOR"). The
facility matures in 2001. At December 31, 2000, £600,000
($895,800 equivalent) was outstanding under the facility.
Junior Subordinated Capital Income Securities
In January 1997, Capital One Capital I, a subsidiary of the Bank cre-
ated as a Delaware statutory business trust, issued $100,000
aggregate amount of Floating Rate Junior Subordinated Capital
Income Securities that mature on February 1, 2027. The securities
represent a preferred beneficial interest in the assets of the trust.
Other Short-Term Borrowings
In August 2000, the Bank entered into a multicurrency revolving
credit facility (the "Multicurrency Facility"). The Multicurrency
Facility is intended to finance the Company’s business in the United
Kingdom and is comprised of two Tranches, each in the amount of
Euro 300,000 ($270,800 equivalent based on the exchange rate
at closing). The Tranche A facility is intended for general corporate
purposes whereas the Tranche B facility is intended to replace and
extend the Corporation’s prior credit facility for U.K. pounds sterling
and Canadian dollars, which matured on August 29, 2000. All
borrowings under the Multicurrency Facility are based on varying
terms of LIBOR. The Corporation serves as guarantor of all
borrowings under the Multicurrency Facility. In October 2000, the
Bank’s subsidiary, Capital One Bank Europe plc, replaced the Bank
as a borrower under the Bank’s guarantee. Tranche A of the
commitment terminates on August 9, 2001, and Tranche B of the
commitment terminates August 9, 2004. As of December 31, 2000,
the Company had no outstandings under the Multicurrency Facility.
In August 2000, the Company entered into four bilateral revolv-
ing credit facilities with different lenders (the "Bilateral Facilities").
The Bilateral Facilities were entered into to finance the Company's
business in Canada and for general corporate purposes. Two of the
Bilateral Facilities are for Capital One Inc., guaranteed by the Cor-
poration, and are each in the amount of C$100,000 ($67,400
equivalent based on the exchange rate at closing) with interest
rates based on varying terms of the lenders’ cost of funds. The other
two Bilateral Facilities are for the Corporation in the amount of
$70,000 and $30,000 with interest rates based on varying terms
of LIBOR. In February 2001, the two Bilateral Facilities for Capital
One Inc. were terminated. The two remaining Bilateral Facilities will
terminate on August 10, 2001. As of December 31, 2000, the Com-
pany had $36,689 outstanding under the Bilateral Facilities.
In May 1999, the Company entered into a four-year,
$1,200,000 unsecured revolving credit arrangement (the "Credit
Facility"). The Credit Facility is comprised of two tranches: a
$810,000 Tranche A facility available to the Bank and the Savings
Bank, including an option for up to $250,000 in multicurrency
availability, and a $390,000 Tranche B facility available to the Cor-
poration, the Bank and the Savings Bank, including an option for up
to $150,000 in multicurrency availability. Each tranche under the
facility is structured as a four-year commitment and is available for
general corporate purposes. All borrowings under the Credit Facil-
ity are based on varying terms of LIBOR. The Bank has irrevocably
undertaken to honor any demand by the lenders to repay any bor-
rowings which are due and payable by the Savings Bank but which
have not been paid. Any borrowings under the Credit Facility will
mature on May 24, 2003; however, the final maturity of each
tranche may be extended for three additional one-year periods with
the lenders’ consent. As of December 31, 2000 and 1999, the Com-
pany had no outstandings under the Credit Facility.
Bank Notes
In June 2000, the Bank entered into a Global Bank Note Program,
from which it may issue and sell up to a maximum of U.S.
$5,000,000 aggregate principal amount (or the equivalent thereof
in other currencies) of senior global bank notes and subordinated
global bank notes with maturities from 30 days to 30 years. This
Global Bank Note Program must be renewed annually. As of Decem-
ber 31, 2000, the Bank had $994,794 outstanding with maturities
of three and five years. On February 6, 2001, the Bank also issued
a $1,250,000 five-year fixed rate senior bank note under the pro-
gram. The Company has historically issued senior unsecured debt
of the Bank through its Domestic Bank Note Program. Under this
bank note program, the Bank from time to time may issue senior
bank notes at fixed or variable rates tied to LIBOR with maturities
from thirty days to thirty years. The aggregate principal amount
available for issuance under the program is $8,000,000 (of which,
up to $200,000 may be subordinated bank notes). As of December
31, 2000 and 1999, there were $2,501,761 and $3,626,651 out-
standing under the Domestic Bank Note Program, with no
subordinated bank notes issued or outstanding.
The Bank has established a program for the issuance of debt
instruments to be offered outside of the United States. Under this
program, the Bank from time to time may issue instruments in the
aggregate principal amount of $1,000,000 equivalent outstanding
at any one time ($5,000 outstanding as of December 31, 2000 and
1999). Instruments under this program may be denominated in
any currency or currencies. The Bank did not renew this program
in 2000 and it is no longer available for issuances.
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