Fifth Third Bank 2013 Annual Report Download - page 131

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
129 Fifth Third Bancorp
16. LONG-TERM DEBT
The following table is a summary of the Bancorp’s long-term borrowings at December 31:
($ in millions) Maturity Interest Rate 2013 2012
Parent Company
Senior:
Fixed-rate notes $ - 758
Fixed-rate notes 2016 3.625% 999 999
Fixed-rate notes 2022 3.50% 497 497
Subordinated:(b)
Floating-rate notes 2016 0.67% 250 250
Fixed-rate notes 2017 5.45% 558 583
Fixed-rate notes 2018 4.50% 555 584
Fixed-rate notes 2024 4.30% 748 -
Fixed-rate notes 2038 8.25% 1,150 1,330
J
unior subordinated:(a)
Fixed-rate notes - 750
Subsidiaries
Senior:
Floating-rate bank notes - 500
Fixed-rate notes 2016 1.15% 1,000 -
Fixed-rate notes 2016 0.90% 400 -
Floating-rate notes 2016 0.75% 750 -
Floating-rate notes 2016 0.67% 300 -
Fixed-rate notes 2018 1.45% 587 -
Subordinated:(b)
Fixed-rate bank notes 2015 4.75% 524 546
J
unior subordinated:(a)
Floating-rate debentures 2035 1.67% - 1.94% 51 50
FHLB advances 2015-2041 0.05% - 6.87% 44 53
Notes associated with consolidated VIE:
Automobile loan securitization:
Fixed-rate notes 2014-2020 0.25% - 1.30% 1,048 -
Other 2014-2039 Varies 172 185
Total $9,633 7,085
(a) Qualify as Tier I capital for regulatory capital purposes. See Note 28 for further information.
(b) Qualify as Tier II capital for regulatory capital purposes. .
The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate
annual maturities of long-term debt obligations (based on final maturity dates) as of December 31, 2013, are presented in the following table:
($ in millions) Parent Subsidiaries Total
2014 $ - 157 157
2015 - 526 526
2016 1,249 2,842 4,091
2017 558 390 948
2018 555 592 1,147
Thereafter 2,395 369 2,764
Total $ 4,757 4,876 9,633
At December 31, 2013, the Bancorp had outstanding principal
balances of $9.4 billion, net discounts of $21 million and additions
for mark-to-market adjustments on its hedged debt of $278 million.
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.
The Bancorp was in compliance with all debt covenants at
December 31, 2013.
PARENT COMPANY LONG-TERM BORROWINGS
Senior Notes
On January 25, 2011, the Bancorp issued $1.0 billion of senior notes
to third party investors. The senior notes bear a fixed rate of interest
of 3.625% per annum. The notes are unsecured, senior obligations
of the Bancorp. Payment of the full principal amounts of the notes
is due upon maturity on January 25, 2016. The notes are not subject
to redemption at the Bancorp’s option at any time prior to maturity.
On March 7, 2012, the Bancorp issued $500 million of senior
notes to third party investors, and entered into a Supplemental
Indenture dated March 7, 2012 with the Trustee, which modified
the existing Indenture for Senior Debt Securities dated April 30,
2008. The Supplemental Indenture and the Indenture define the
rights of the senior notes, which senior notes are represented by a
Global Security dated as of March 7, 2012. The senior notes bear a
fixed rate of interest of 3.50% per annum. The notes are unsecured,
senior obligations of the Bancorp. Payment of the full principal