KeyBank 2014 Annual Report Download - page 215

Short-term credit facilities. We maintain cash on deposit in our Federal Reserve account, which has reduced
our need to obtain funds through various short-term unsecured money market products. This account, which was
maintained at $3.8 billion at December 31, 2014, and the unpledged securities in our investment portfolio
provide a buffer to address unexpected short-term liquidity needs. We also have secured borrowing facilities at
the Federal Home Loan Bank of Cincinnati and the Federal Reserve Bank of Cleveland to satisfy short-term
liquidity requirements. As of December 31, 2014, our unused secured borrowing capacity was $18.7 billion at the
Federal Reserve Bank of Cleveland and $3.5 billion at the Federal Home Loan Bank of Cincinnati.
18. Long-Term Debt
The following table presents the components of our long-term debt, net of unamortized discounts and
adjustments related to hedging with derivative financial instruments. We use interest rate swaps and caps, which
modify the repricing characteristics of certain long-term debt, to manage interest rate risk. For more information
about such financial instruments, see Note 8 (“Derivatives and Hedging Activities”).
December 31,
dollars in millions 2014 2013
Senior medium-term notes due through 2021 (a) $ 2,575 $ 2,553
0.975% Subordinated notes due 2028 (b) 162 162
6.875% Subordinated notes due 2029 (b) 113 103
7.750% Subordinated notes due 2029 (b) 147 133
Total parent company 2,997 2,951
Senior medium-term notes due through 2039 (c) 2,611 1,858
7.413% Subordinated remarketable notes due 2027 (d) 272 270
5.80% Subordinated notes due 2014 (d) —768
4.95% Subordinated notes due 2015 (d) 251 251
5.45% Subordinated notes due 2016 (d) 524 544
5.70% Subordinated notes due 2017 (d) 222 229
4.625% Subordinated notes due 2018 (d) 103 104
6.95% Subordinated notes due 2028 (d) 298 298
Lease financing debt due through 2016 (e) —5
Secured borrowing due through 2020 (f) 302 58
Federal Home Loan Bank advances due through 2036 (g) 200 224
Investment Fund Financing due through 2052 (h) 95 90
Total subsidiaries 4,878 4,699
Total long-term debt $ 7,875 $ 7,650
(a) The senior medium-term notes had a weighted-average interest rate of 3.89% at December 31, 2014, and December 31, 2013. These
notes had fixed interest rates at December 31, 2014, and December 31, 2013. One of the three notes can be redeemed one month prior to
its maturity date, while the other two notes may not be redeemed prior to their maturity dates.
(b) See Note 19 (“Trust Preferred Securities Issued by Unconsolidated Subsidiaries”) for a description of these notes.
(c) Senior medium-term notes had weighted-average interest rates of 1.84% at December 31, 2014, and 1.58% at December 31, 2013. These
notes had a combination of fixed and floating interest rates. Two of the six notes can be redeemed one month prior to their maturity
dates, while the other four notes may not be redeemed prior to their maturity dates. The 2014 issuance was at a higher rate than the
existing debt.
(d) These notes are all obligations of KeyBank. Only the subordinated remarketable notes due 2027 may be redeemed prior to their maturity
dates.
(e) Lease financing debt was paid off during 2014 and had a weighted-average interest rate of 5.99% at December 31, 2013. This category of
debt consisted primarily of nonrecourse debt collateralized by leased equipment under operating, direct financing, and sales-type leases.
(f) The secured borrowing had weighted-average interest rates of 4.41% at December 31, 2014, and 4.79% at December 31, 2013. This
borrowing is collateralized by commercial lease financing receivables, and principal reductions are based on the cash payments received
from the related receivables. Additional information pertaining to these commercial lease financing receivables is included in Note 4
(“Loans and Loans Held for Sale”).
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