SunTrust 2012 Annual Report Download - page 155

Notes to Consolidated Financial Statements (Continued)
139
Long-term debt
Long-term debt as of December 31 was as follows:
(Dollars in millions) 2012 2011 Interest Rates Maturities
Parent Company Only
Senior, fixed rate 1$2,270 $2,719 1.00% - 6.00% 2014 - 2028
Senior, variable rate 152 1,527 0.46 - 4.00 2013 - 2019
Subordinated, fixed rate 200 200 6.00 2026
Junior subordinated, fixed rate —1,197 6.10 - 7.88 2036 - 2068
Junior subordinated, variable rate 627 651 0.96 - 1.34 2027 - 2028
Total Parent Company debt (excluding intercompany of $160 as
of December 31, 2012 and 2011) 3,249 6,294
Subsidiaries
Senior, fixed rate 2426 350 0.50 - 9.65 2013 - 2048
Senior, variable rate 33,846 2,504 0.41 - 7.50 2013 - 2037
Subordinated, fixed rate 41,336 1,260 5.00 - 7.25 2015 - 2020
Subordinated, variable rate 500 500 0.60 - 0.66 2015
Total subsidiaries debt 6,108 4,614
Total long-term debt $9,357 $10,908
1 Includes $0 and $448 million of debt recorded at fair value at December 31, 2012 and 2011, respectively.
2 Includes leases and other obligations that do not have a stated interest rate.
3 Includes $286 million and $289 million of debt recorded at fair value at December 31, 2012 and 2011, respectively.
4 Debt recorded at fair value.
The Company held no foreign denominated debt at December 31, 2012; however, the Company had $460 million of foreign
denominated debt at December 31, 2011. The Company held no government-guaranteed debt issued under the FDIC's
Temporary Liquidity Guarantee Program at December 31, 2012; however, the Company held $576 million under the FDIC's
Temporary Liquidity Guarantee Program at December 31, 2011. Maturities of long-term debt are: 2013 – $295 million; 2014
– $19 million; 2015 – $835 million; 2016 – $1.2 billion; 2017 – $4.7 billion; and thereafter – $2.3 billion.
Restrictive provisions of several long-term debt agreements prevent the Company from creating liens on, disposing of, or
issuing (except to related parties) voting stock of subsidiaries. Further, there are restrictions on mergers, consolidations, certain
leases, sales or transfers of assets, minimum shareholders’ equity, and maximum borrowings by the Company. As of
December 31, 2012, the Company was in compliance with all covenants and provisions of long-term debt agreements. As
currently defined by federal bank regulators, long-term debt of $627 million and $1.9 billion qualified as Tier 1 capital as of
December 31, 2012 and 2011, respectively, and long-term debt of $1.5 billion and $1.6 billion qualified as Tier 2 capital as
of December 31, 2012 and 2011, respectively. As of December 31, 2012, the Company had collateral pledged to the FHLB
of Atlanta to support $16.0 billion of available borrowing capacity with $3.0 billion of long-term debt and $1.5 billion of
short-term debt outstanding at December 31, 2012.
The Company does not consolidate certain wholly-owned trusts which had been formed for the sole purpose of issuing trust
preferred securities. The proceeds from the trust preferred securities issuances were invested in junior subordinated debentures
of the Parent Company. The obligations of these debentures constitute a full and unconditional guarantee by the Parent Company
of the trust preferred securities.
During 2012, $1.4 billion of floating rate senior notes and $589 million of floating rate senior foreign denominated notes
matured. Additionally, during 2012, the Company extinguished a $1.0 billion long-term FHLB advance and $1.2 billion of
floating rate senior notes related to the Coke transaction. Fixed rate junior subordinated notes of $1.2 billion, due in 2036 and
2068, were repurchased during the year ended December 31, 2012. Net losses related to debt extinguishment during the year
ended December 31, 2012 were $16 million. During 2012, the Company entered into new long-term FHLB advances of $4.0
billion.