US Bank 2001 Annual Report Download - page 71

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rate of Bank notes at December 31, 2001, was 2.69 percent. amount of junior subordinated deferrable interest
Euro medium-term notes outstanding at December 31, debentures (the ""Debentures'') of the Company. The
2001, bear Öoating rate interest at three-month LIBOR plus Debentures are the sole assets of the Trusts and are
.15 percent. The interest rate at December 31, 2001, was eliminated, along with the related income statement eÅects,
2.58 percent. in the consolidated Ñnancial statements.
The Company's obligations under the Debentures and
Maturities of long-term debt outstanding at December 31, related documents, taken together, constitute a full and
2001, were: unconditional guarantee by the Company of the obligations
Parent of the Trusts. The guarantee covers the distributions and
(Dollars in Millions) Consolidated Company
payments on liquidation or redemption of the Trust
2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 6,789 $1,465 Preferred Securities, but only to the extent of funds held by
2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,970 1,545
the Trusts.
2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,529 916
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,533 336 The Trust Preferred Securities are mandatorily
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 242 3 redeemable upon the maturity of the Debentures, or upon
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,653 1,809 earlier redemption as provided in the indentures. The
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $25,716 $6,074 Company has the right to redeem retail Debentures in
whole or in part on or after speciÑc dates, at a redemption
Company-obligated Mandatorily price speciÑed in the indentures plus any accrued but
Redeemable Preferred Securities of unpaid interest to the redemption date. The Company has
Subsidiary Trusts Holding Solely the the right to redeem institutional Debentures in whole, (but
Junior Subordinated Debentures of not in part), on or after speciÑc dates, at a redemption
the Parent Company price speciÑed in the indentures plus any accrued but
unpaid interest to the redemption date. The Trust Preferred
The Company has issued $2.9 billion of company-
Securities are redeemable in whole or in part in 2003, 2006
obligated mandatorily redeemable preferred securities of
and 2007 in the amounts of $350 million, $2,250 million
subsidiary trusts holding solely the junior subordinated
and $300 million, respectively.
debentures of the parent company (""Trust Preferred
The Trust Preferred Securities qualify as tier I capital
Securities'') through nine separate issuances by nine wholly
of the Company for regulatory capital purposes. The
owned subsidiary grantor trusts (""Trusts''). The Trust
Company used the proceeds from the sales of the
Preferred Securities accrue and pay distributions periodically
Debentures for general corporate purposes.
at speciÑed rates as provided in the indentures. The Trusts
used the net proceeds from the oÅerings to purchase a like
The following table is a summary of the Trust Preferred Securities as of December 31, 2001:
Trust
Preferred
Issuance Securities Debentures Rate Rate at Maturity Redemption
Issuance Trust (Dollars in Millions) Date Amount Amount Type(a) 12/31/01 Date Date(b)
Retail
USB Capital VÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12/2001 $300 $309 Fixed 7.25% 12/2031 12/07/2006
USB Capital IV ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11/2001 500 515 Fixed 7.35% 11/2031 11/01/2006
USB Capital III ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 05/2001 700 722 Fixed 7.75% 05/2031 05/04/2006
USB Capital II ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 03/1998 350 361 Fixed 7.20% 04/2028 04/01/2003
Institutional
Star Capital I ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 06/1997 150 155 Variable 2.64% 06/2027 06/15/2007
Mercantile Capital Trust IÏÏÏÏÏÏÏ 02/1997 150 155 Variable 3.08% 02/2027 02/01/2007
USB Capital I ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12/1996 300 309 Fixed 8.27% 12/2026 12/15/2006
Firstar Capital Trust I ÏÏÏÏÏÏÏÏÏÏ 12/1996 150 155 Fixed 8.32% 12/2026 12/15/2006
FBS Capital IÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 11/1996 300 309 Fixed 8.09% 11/2026 11/15/2006
(a) The variable rate Trust Preferred Securities re-price quarterly.
(b) Earliest date of redemption.
U.S. Bancorp
Note 14
69