MetLife 2013 Annual Report Download - page 181

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
12. Long-term and Short-term Debt (continued)
Senior Notes — Other Issuances
In November 2013, MetLife, Inc. issued $1.0 billion of senior notes due in November 2043. The senior notes bear interest at a fixed rate of 4.875%,
payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $10 million of related costs which have been capitalized and includedin
other assets. These costs are being amortized over the term of the senior notes.
In August 2012, MetLife, Inc. issued $750 million of senior notes due in August 2042. The senior notes bear interest at a fixed rate of 4.125%,
payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $7 million of related costs which have been capitalized and included in
other assets. These costs are being amortized over the term of the senior notes.
Advances from the Federal Home Loan Bank of New York
MetLife Bank has been a member of the FHLB of NY and, in connection with such membership, entered into advances agreements with the FHLB
of NY under which MetLife Bank received cash advances, which were reflected in long-term debt or short-term debt according to the tenor of the
advances. In January 2012, MetLife Bank discontinued taking advances from the FHLB of NY. In April 2012, MetLife Bank transferred cash to MLIC
related to $3.8 billion of outstanding advances which had been included in long-term debt, and MLIC assumed the associated obligations under terms
similar to those of the transferred advances by issuing funding agreements for which the liability was included in PABs. During the years ended
December 31, 2013 and 2012, MetLife Bank did not receive advances. During the year ended December 31, 2011, MetLife Bank received advances
totaling $1.3 billion. During the years ended December 31, 2012 and 2011, MetLife Bank made repayments totaling $374 million and $750 million,
respectively, related to long-term borrowings under the advances agreements. MetLife Bank did not make repayments in 2013. There was no long-term
debt or short-term debt liability for advances at December 31, 2013 and 2012.
Short-term Debt
Short-term debt with maturities of one year or less was as follows:
December 31,
2013 2012
(In millions)
Commercial paper ..................................................................................... $ 175 $ 100
Average daily balance ................................................................................... $ 103 $ 119
Average days outstanding ............................................................................... 55days 40 days
During the years ended December 31, 2013, 2012 and 2011, the weighted average interest rate on short-term debt was 0.12%, 0.17% and
0.33%, respectively.
Interest Expense
Interest expense related to long-term and short-term debt included in other expenses was $854 million, $871 million and $975 million for the years
ended December 31, 2013, 2012 and 2011, respectively. Such amounts do not include interest expense on long-term debt related to CSEs — FVO,
collateral financing arrangements, junior subordinated debt securities, or common equity units. See Notes 8, 13, 14 and 15.
Credit and Committed Facilities
The Company maintains unsecured credit facilities and committed facilities, which aggregated $4.0 billion and $12.4 billion, respectively, at
December 31, 2013. When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.
Credit Facilities
The unsecured credit facilities are used for general corporate purposes, to support the borrowers’ commercial paper programs and for the
issuance of letters of credit. Total fees expensed associated with these credit facilities were $24 million, $30 million and $35 million for the years ended
December 31, 2013, 2012 and 2011, respectively, and are included in other expenses. Information on these credit facilities at December 31, 2013
was as follows:
Borrower(s) Expiration Capacity
Letters of
Credit
Issued Drawdowns Unused Commitments
(In millions)
MetLife, Inc. and MetLife Funding, Inc. ............................ September 2017 (1) $1,000 $ 59 $— $ 941
MetLife, Inc. and MetLife Funding, Inc. ............................ August 2016 (2) 3,000 133 — 2,867
Total .................................................... $4,000 $192 $— $3,808
(1) In September 2012, MetLife, Inc. and MetLife Funding, Inc. entered into a $1.0 billion five-year credit agreement which amended and restated the
three-year agreement dated October 2010. All borrowings under the 2012 five-year credit agreement must be repaid by September 2017, except
that letters of credit outstanding on that date may remain outstanding until no later than September 2018. MetLife, Inc. incurred costs of $4 million
related to the amended and restated credit facility, which were capitalized and included in other assets. These costs are being amortized over the
remaining term of the amended and restated credit facility.
(2) In connection with the October 2013 re-domestication of Exeter to Delaware in anticipation of the Mergers and the related redistribution of assets
held in trust at Exeter, $1.9 billion of outstanding letters of credit were no longer required and therefore canceled by the Company. Accordingly,
remaining availability under the unsecured credit facilities increased by $1.9 billion in October 2013. See Note 8 for further information on the
Mergers.
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