Wells Fargo 2005 Annual Report Download - page 83

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81
Following is a summary of our long-term debt based on original maturity (reflecting unamortized debt discounts and premiums,
where applicable):
Note 12: Long-Term Debt
(in millions) December 31,
Maturity Stated 2005 2004
date(s) interest
rate(s)
Wells Fargo & Company (Parent only)
Senior
Fixed-Rate Notes (1) 2006-2035 2.20-6.875% $16,081 $12,970
Floating-Rate Notes 2006-2015 Varies 21,711 20,155
Extendable Notes (2) 2008-2015 Varies 10,000 5,500
Equity-Linked Notes (3) 2006-2014 Varies 444 472
Convertible Debenture (4) 2033 Varies 3,000 3,000
Total senior debt – Parent 51,236 42,097
Subordinated
Fixed-Rate Notes (1) 2011-2023 4.625-6.65% 4,558 4,502
FixFloat Notes 2012 4.00% through 2006, varies 300 299
Total subordinated debt – Parent 4,858 4,801
Junior Subordinated
Fixed-Rate Notes (1)(5) 2031-2034 5.625-7.00% 3,247 3,248
Total junior subordinated debt – Parent 3,247 3,248
Total long-term debt – Parent 59,341 50,146
Wells Fargo Bank, N.A. and its subsidiaries (WFB, N.A.)
Senior
Fixed-Rate Notes (1) 2006-2019 1.16-4.24% 256 218
Floating-Rate Notes 2006-2034 Varies 3,138 7,615
Floating-Rate Federal Home Loan Bank (FHLB) Advances (6) —— —1,400
FHLB Notes and Advances 2012 5.20% 203 200
Equity-Linked Notes (3) 2006-2014 Varies 229 40
Notes payable by subsidiaries —— —79
Obligations of subsidiaries under capital leases (Note 7) 14 19
Total senior debt – WFB, N. A. 3,840 9,571
Subordinated
FixFloat Notes (7) —— —998
Fixed-Rate Notes (1) 2010-2015 4.07-7.55% 4,330 2,821
Other notes and debentures 2006-2013 4.50-12.00% 13 11
Total subordinated debt – WFB, N.A. 4,343 3,830
Total long-term debt – WFB, N.A. 8,183 13,401
Wells Fargo Financial, Inc., and its subsidiaries (WFFI)
Senior
Fixed-Rate Notes 2006-2034 2.06-7.47% 7,159 5,343
Floating-Rate Notes 2007-2010 Varies 1,714 1,303
Total long-term debt – WFFI $ 8,873 $ 6,646
(1) We entered into interest rate swap agreements for a major portion of these notes, whereby we receive fixed-rate interest payments approximately equal to
interest on the notes and make interest payments based on an average one-month, three-month or six-month London Interbank Offered Rate (LIBOR).
(2) The extendable notes are floating-rate securities with an initial maturity of 13 months or 2 years, which can be extended, respectively, on a rolling monthly basis,
to a final maturity of 5 or 6 years, or, on a 6 month rolling basis, to a final maturity of 10 years, at the investor’s option.
(3) These notes are linked to baskets of equities, commodities or equity indices.
(4) On April 15, 2003, we issued $3 billion of convertible senior debentures as a private placement. In November 2004, we amended the indenture under which the
debentures were issued to eliminate a provision in the indenture that prohibited us from paying cash upon conversion of the debentures if an event of default
as defined in the indenture exists at the time of conversion. We then made an irrevocable election under the indenture on December 15, 2004, that upon conversion
of the debentures, we must satisfy the accreted value of the obligation (the amount accrued to the benefit of the holder exclusive of the conversion spread) in cash
and may satisfy the conversion spread (the excess conversion value over the accreted value) in either cash or stock.We can also redeem all or some of the convertible
debt securities for cash at any time on or after May 5, 2008, at their principal amount plus accrued interest, if any.
(5) Effective December 31, 2003, as a result of the adoption of FIN 46R we deconsolidated certain wholly-owned trusts formed for the sole purpose of issuing trust
preferred securities (the Trusts).The junior subordinated debentures held by the Trusts are included in the Company’s long-term debt.
(6) During 2005, the FHLB exercised their put options on all outstanding floating-rate advances.
(7) Note was called in June 2005.
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