Ameriprise 2012 Annual Report Download - page 152

13. Debt
The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows:
Outstanding Balance Stated Interest Rate
December 31, December 31,
2012 2011 2012 2011
(in millions)
Senior notes due 2015 $ 750(1) $ 753(1) 5.7% 5.7%
Senior notes due 2019 347(1) 341(1) 7.3 7.3
Senior notes due 2020 812(1) 805(1) 5.3 5.3
Senior notes due 2039 200 200 7.8 7.8
Junior subordinated notes due 2066 294 294 7.5 7.5
Total long-term debt 2,403 2,393
Short-term borrowings 501 504 0.4 0.3
Total $ 2,904 $ 2,897
(1) Amounts include adjustments for fair value hedges on the Company’s long-term debt and any unamortized discounts. See Note 15
for information on the Company’s fair value hedges.
Long-term Debt
On November 23, 2005, the Company issued $1.5 billion of unsecured senior notes including five-year notes which
matured November 15, 2010 and 10-year notes which mature November 15, 2015, and incurred debt issuance costs of
$7 million. Interest payments are due semi-annually on May 15 and November 15.
On June 8, 2009, the Company issued $300 million of unsecured senior notes which mature June 28, 2019, and
incurred debt issuance costs of $3 million. Interest payments are due semi-annually in arrears on June 28 and
December 28.
On March 11, 2010, the Company issued $750 million of unsecured senior notes which mature March 15, 2020, and
incurred debt issuance costs of $6 million. Interest payments are due semi-annually in arrears on March 15 and
September 15.
On June 3, 2009, the Company issued $200 million of unsecured senior notes which mature June 15, 2039, and
incurred debt issuance costs of $6 million. Interest payments are due quarterly in arrears on March 15, June 15,
September 15 and December 15.
On May 26, 2006, the Company issued $500 million of unsecured junior subordinated notes, which mature June 1,
2066, and incurred debt issuance costs of $6 million. For the initial 10-year period, the junior notes carry a fixed interest
rate of 7.5% payable semi-annually in arrears on June 1 and December 1. From June 1, 2016 until the maturity date,
interest on the junior notes will accrue at an annual rate equal to the three-month LIBOR plus a margin equal to 290.5
basis points, payable quarterly in arrears. The Company has the option to defer interest payments, subject to certain
limitations. In addition, interest payments are mandatorily deferred if the Company does not meet specified capital
adequacy, net income or shareholders’ equity levels. As of December 31, 2012 and 2011, the Company had met the
specified levels.
The Company’s junior subordinated notes due 2066 and credit facility contain various administrative, reporting, legal and
financial covenants. The Company was in compliance with all such covenants at both December 31, 2012 and 2011.
At December 31, 2012, future maturities of Ameriprise Financial long-term debt were as follows:
(in millions)
2013 $ —
2014 —
2015 700
2016 —
2017 —
Thereafter 1,544
Total future maturities $ 2,244
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