Freddie Mac 2009 Annual Report Download - page 266

Long-Term Debt
Table 9.3 summarizes our long-term debt.
Table 9.3 — Long-Term Debt
Contractual
Maturity
(1)
Par Value
Balance,
Net
(2)
Interest
Rates Par Value
Balance,
Net
(2)
Interest
Rates
2009 2008
December 31,
(dollars in millions)
Long-term debt:
Senior debt:
(3)
Fixed-rate:
Medium-term notes — callable
(4)
.......... 2011-2039 $143,294 $143,168 1.00% – 6.63% $158,228 $158,018 1.61% – 6.85%
Medium-term notes — non-callable . ....... 2011-2028 8,571 8,732 1.00% – 13.25% 7,285 7,527 1.00% – 13.25%
U.S. dollar Reference Notes˛securities —
non-callable ...................... 2011-2032 202,997 202,941 1.13% – 6.75% 197,781 197,609 2.38% – 7.00%
AReference Notes˛securities — non-callable . . 2012-2014 2,449 2,590 4.38% – 5.13% 11,295 11,740 4.38% – 5.75%
Variable-rate:
Medium-term notes — callable
(5)
.......... 2011-2029 21,515 21,515 Various 11,169 11,170 Various
Medium-term notes — non-callable . ....... 2011-2026 44,340 44,360 Various 2,495 2,520 Various
Zero-coupon:
Medium-term notes — callable
(6)
.......... 2028-2039 23,388 4,444 —% 25,492 5,136 —%
Medium-term notes — non-callable
(7)
....... 2011-2039 13,588 8,015 —% 15,425 9,415 —%
Hedging-related basis adjustments ........... N/A 166 N/A 267
Total senior debt ...................... 460,142 435,931 429,170 403,402
Subordinated debt:
Fixed-rate
(8)
......................... 2011-2018 578 575 5.00% – 8.25% 4,452 4,394 5.00% – 8.25%
Zero-coupon
(9)
....................... 2019 331 123 —% 332 111 —%
Total subordinated debt . ................. 909 698 4,784 4,505
Total long-term debt . ...................... $461,051 $436,629 $433,954 $407,907
(1) Represents contractual maturities at December 31, 2009.
(2) Represents par value of long-term debt securities and subordinated borrowings, net of associated discounts or premiums and hedge-related basis
adjustments.
(3) For debt denominated in a currency other than the U.S. dollar, the outstanding balance is based on the exchange rate at December 31, 2009 and 2008,
respectively.
(4) Includes callable Estate Notes
SM
securities and FreddieNotes˛securities of $6.1 billion and $9.4 billion at December 31, 2009 and 2008, respectively.
These debt instruments represent medium-term notes that permit persons acting on behalf of deceased beneficial owners to require us to repay principal
prior to the contractual maturity date.
(5) Includes callable Estate Notes
SM
securities and FreddieNotes˛securities of $5.5 billion and $2.0 billion at December 31, 2009 and 2008.
(6) The effective rates for zero-coupon medium-term notes — callable ranged from 5.78% – 7.25% and 6.11% – 7.25% at December 31, 2009 and 2008,
respectively.
(7) The effective rates for zero-coupon medium-term notes — non-callable ranged from 0.56% – 11.18% and 2.49% – 11.18% at December 31, 2009 and
2008, respectively.
(8) Balance, net includes callable subordinated debt of $— billion at both December 31, 2009 and 2008.
(9) The effective rate for zero-coupon subordinated debt, due after one year was 10.51% at both December 31, 2009 and 2008.
A portion of our long-term debt is callable. Callable debt gives us the option to redeem the debt security at par on one
or more specified call dates or at any time on or after a specified call date.
Table 9.4 summarizes the contractual maturities of long-term debt securities (including current portion of long-term
debt) and subordinated borrowings outstanding at December 31, 2009, assuming callable debt is paid at contractual maturity.
Table 9.4 — Long-Term Debt (including current portion of long-term debt)
Annual Maturities
Contractual
Maturity
(1)(2)
(in millions)
2010 ....................................................................................... $105,729
2011 ....................................................................................... 135,514
2012 ....................................................................................... 94,362
2013 ....................................................................................... 47,386
2014 ....................................................................................... 53,372
Thereafter . . . ................................................................................. 130,417
Total
(1)
...................................................................................... 566,780
Net discounts, premiums, hedge-related and other basis adjustments
(3)
......................................... (24,347)
Long-term debt, including current portion of long-term debt . . ................................................ $542,433
(1) Represents par value of long-term debt securities and subordinated borrowings.
(2) For debt denominated in a currency other than the U.S. dollar, the par value is based on the exchange rate at December 31, 2009.
(3) Other basis adjustments primarily represent changes in fair value attributable to instrument-specific credit risk related to foreign-currency-denominated debt.
Lines of Credit
We have an intraday line of credit with a third-party to provide additional liquidity to fund our intraday activities
through the Fedwire system in connection with the Federal Reserve’s payments system risk policy, which restricts or
263 Freddie Mac