Fifth Third Bank 2012 Annual Report Download - page 124

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
122 Fifth Third Bancorp
15. LONG-TERM DEBT
The following table is a summary of the Bancorp’s long-term borrowings at December 31:
($ in millions) Maturity Interest Rate 2012 2011
Parent Company
Senior:
Fixed-rate notes 2013 6.25% $758 779
Fixed-rate notes 2016 3.625% 999 1,000
Fixed-rate notes 2022 3.50% 497 -
Subordinated:(b)
Floating-rate notes 2016 0.73% 250 250
Fixed-rate notes 2017 5.45% 583 589
Fixed-rate notes 2018 4.50% 584 581
Fixed-rate notes 2038 8.25% 1,330 1,348
J
unior subordinated:(a)
Fixed-rate notes(c) 2067 6.50% 750 750
Fixed-rate notes(c) - 594
Fixed-rate notes(c) - 894
Structured repurchase agreements:
Floating-rate notes - 250
Floating-rate notes - 125
Subsidiaries
Senior:
Floating-rate bank notes 2013 0.42% 500 500
Subordinated:(b)
Fixed-rate bank notes 2015 4.75% 546 561
J
unior subordinated:(a)
Floating-rate debentures 2035 1.73% - 2.00% 50 62
FHLB advances 2014-2041 0.05% - 8.34% 53 1,055
Notes associated with consolidated VIEs:
Automobile loan securitizations:
Fixed-rate notes - 2
Floating-rate notes - 169
Home equity securitization:
Floating-rate notes - 22
Other 2013-2039 Varies 185 151
Total $7,085 9,682
(a) Qualify as Tier I capital for regulatory capital purposes. See Note 27 for further information.
(b) Qualify as Tier II capital for regulatory capital purposes.
(c) Future periods of debt are floating.
The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate
annual maturities of long-term debt obligations (based on final maturity dates) as of December 31, 2012, are presented in the following table:
($ in millions) Parent Subsidiaries Total
2013 $758 519 1,277
2014 - 38 38
2015 - 560 560
2016 1,249 10 1,259
2017 583 86 669
Thereafter 3,161 121 3,282
Total $5,751 1,334 7,085
At December 31, 2012, the Bancorp had outstanding principal
balances of $6.5 billion, net discounts of $20 million and additions
for mark-to-market adjustments on its hedged debt of $555 million.
At December 31, 2011, the Bancorp had outstanding principal
balances of $9.0 billion, net discounts of $18 million and additions
for mark-to-market adjustments on its hedged debt of $662 million.
The Bancorp was in compliance with all debt covenants at
December 31, 2012.
PARENT COMPANY LONG-TERM BORROWINGS
Senior Notes
In April 2008, the Bancorp issued $750 million of senior notes to
third party investors. The senior notes bear a fixed rate of interest of
6.25% per annum. The Bancorp entered into interest rate swaps to
convert $675 million to floating rate and, at December 31, 2012 and
2011, paid a rate of 2.72% and 2.84%, respectively. The notes are
unsecured, senior obligations of the Bancorp. Payment of the full
principal amount of the notes will be due upon maturity on May 1,
2013. The notes are not subject to redemption at the Bancorp's