Wells Fargo 2006 Annual Report Download - page 90

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88
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 2006 2005
date(s) interest
rate(s)
Wells Fargo & Company (Parent only)
Senior
Fixed-Rate Notes (1) 2007-2035 2.20-6.75% $21,225 $16,081
Floating-Rate Notes 2007-2046 Varies 21,917 21,711
Extendable Notes (2) 2008-2015 Varies 10,000 10,000
Equity-Linked Notes 2007-2014 0.23-4.24% 372 444
Convertible Debenture (3) 2033 Varies 3,000 3,000
Total senior debt – Parent 56,514 51,236
Subordinated
Fixed-Rate Notes (1) 2011-2023 4.625-6.65% 4,560 4,558
FixFloat Notes 2012 4.00% through mid-2007, varies 300 300
Total subordinated debt – Parent 4,860 4,858
Junior Subordinated
Fixed-Rate Notes (1)(4)(5) 2031-2036 5.625-7.00% 4,022 3,247
Total junior subordinated debt – Parent 4,022 3,247
Total long-term debt – Parent 65,396 59,341
Wells Fargo Bank, N.A. and its subsidiaries (WFB, N.A.)
Senior
Fixed-Rate Notes (1) 2007-2011 1.16-5.375% 173 256
Floating-Rate Notes 2007-2034 Varies 2,174 3,138
FHLB Notes and Advances 2012 5.20% 203 203
Equity-Linked Notes 2007-2019 0.53-5.79% 985 229
Obligations of subsidiaries under capital leases (Note 7) 12 14
Total senior debt – WFB, N.A. 3,547 3,840
Subordinated
Fixed-Rate Notes (1) 2010-2036 4.75-7.55% 6,264 4,330
Floating-Rate Notes 2016 Varies 500 —
Other notes and debentures 2007-2013 4.70-12.00% 13 13
Total subordinated debt – WFB, N.A. 6,777 4,343
Total long-term debt – WFB, N.A. 10,324 8,183
Wells Fargo Financial, Inc., and its subsidiaries (WFFI)
Senior
Fixed-Rate Notes 2007-2034 2.67-7.47% 7,654 7,159
Floating-Rate Notes 2007-2010 Varies 1,970 1,714
Total long-term debt – WFFI $ 9,624 $8,873
(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, which can be extended on a rolling monthly basis to a final maturity of 5 years
at the investor’s option.
(3) 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.
(4) Effective December 31, 2003, as a result of the adoption of FIN 46 (revised December 2003), Consolidation of Varible Interest Entities (FIN 46(R)), 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.
(5) On December 5, 2006, Wells Fargo Capital X issued 5.95% Capital Securities and used the proceeds to purchase from the Parent 5.95% Capital Efficient Notes (the Notes)
due 2086 (scheduled maturity 2036). When it issued the Notes, the Parent entered into a Replacement Capital Covenant (the Covenant) in which it agreed for the benefit
of the holders of the Parent’s 5.625% Junior Subordinated Debentures due 2034 that it will not repay, redeem or repurchase, and that none of its subsidiaries will purchase,
any part of the Notes or the Capital Securities on or before December 1, 2066, unless the repayment, redemption or repurchase is made from the net cash proceeds of the
issuance of certain qualified securities and pursuant to the other terms and conditions set forth in the Covenant. For more information, refer to the Covenant, which was
filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed December 5, 2006.
(continued on following page)