Capital One 2002 Annual Report Download - page 36

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FUNDING
Funding Availability
The Company has established access to a variety of funding alternatives in addition to securitization of its consumer loans.
Table 10 illustrates the Company’s unsecured funding sources.
Table 10: Funding Availability
Effective/
(dollars or dollar equivalents in millions) Issue Date Total Capacity Availability(1) Final Maturity(5)
Senior and Subordinated Global Bank Note Program(2) 6/00 $ 5,000 $ 2,263 -
Senior Domestic Bank Note Program(3) 4/97 $ 1,261 - -
Domestic Revolving Credit Facility 5/99 $ 1,200 $ 1,200 5/03
Multicurrency Facility(4) 8/00 $ 315 $ 315 8/04
Collateralized Revolving Credit Facility - $ 2,200 $ 1,306 -
Corporation shelf registration 3/02 - $ 2,248 -
(1) All funding sources are non-revolving except for the Multicurrency Credit Facility, the Domestic Revolving Credit Facility and the Collateralized Revolving Credit Facility.
Funding availability under the credit facilities is subject to compliance with certain representations, warranties and covenants.
Funding availability under all other sources is subject to market conditions.
(2) The global senior and subordinated bank note program has original terms of three to five years.
(3) The senior domestic bank note program has original terms of one to ten years.
(4) US dollar equivalent based on the USD/Euro exchange rate as of December 31, 2002.
(5) Maturity date refers to the date the facility terminates, where applicable.
FUNDING ($ in millions)
Interest-bearing deposits
Other borrowings
Senior notes <3 years
Senior notes >3 years
2002
Total Funding: $29,257
6,365
3,622
1,944
17,326
Total Funding: $22,170
2,667
3,996 12,839
2001
2,668
The Senior and Subordinated Global Bank Note Program gives the Bank the
ability to issue securities to both U.S. and non-U.S. lenders and to raise funds
in foreign currencies. The Senior and Subordinated Global Bank Note
Program had $2.7 billion outstanding at December 31, 2002. In January
2003, the Bank increased its capacity under the Senior and Subordinated
Global Bank Note Program to $8.0 billion. Prior to the establishment of the
Senior and Subordinated Global Bank Note Program, the Bank issued senior
unsecured debt through its $8.0 billion Senior Domestic Bank Note
Program, of which $1.3 billion was outstanding at December 31, 2002. The
Bank did not renew the Senior Domestic Bank Note Program for future
issuances.
In July 2002, the Company repurchased senior bank notes in the amount of
$230.4 million, resulting in a pre-tax gain of $27.0 million.
The Domestic Revolving Credit Facility (the “Credit Facility”) is available for
general corporate purposes of the Company. The Credit Facility is comprised
of two tranches: a $810.0 million Tranche A facility available to the Bank and
the Savings Bank, including an option for up to $250.0 million in
multicurrency availability; and a $390.0 Tranche B facility available to the
Corporation, the Bank and the Savings Bank, including an option for up to
$150.0 million in multicurrency availability. All borrowings under the Credit
Facility are based on varying terms of LIBOR. The Bank has irrevocably
undertaken to honor any demand by the lenders to repay any borrowings
which are due and payable by the Savings Bank but have not been paid.