Fifth Third Bank 2014 Annual Report Download - page 130

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
128 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 2014 2013
Parent Company
Senior:
Fixed-rate notes 2016 3.625% $1,000 999
Fixed-rate notes 2019 2.30% 499 -
Fixed-rate notes 2022 3.50% 497 497
Subordinated:(a)
Floating-rate notes 2016 0.67% 250 250
Fixed-rate notes 2017 5.45% 539 558
Fixed-rate notes 2018 4.50% 544 555
Fixed-rate notes 2024 4.30% 748 748
Fixed-rate notes 2038 8.25% 1,317 1,150
Subsidiaries
Senior:
Fixed-rate notes 2016 1.15% 1,000 1,000
Fixed-rate notes 2016 0.90% 400 400
Floating-rate notes 2016 0.74% 750 750
Floating-rate notes 2016 0.64% 300 300
Fixed-rate notes 2017 1.35% 654 -
Fixed-rate notes 2018 1.45% 597 587
Fixed-rate notes 2019 2.375% 850 -
Fixed-rate notes 2021 2.875% 846 -
Subordinated:(a)
Fixed-rate bank notes 2015 4.75% 502 524
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unior subordinated:(b)
Floating-rate debentures 2035 1.66% - 1.93% 51 51
FHLB advances 2015-2041 0.05% - 6.87% 41 44
Notes associated with consolidated VIE:
Automobile loan securitization:
Fixed-rate notes 2015-2021 0.19% - 1.47% 3,434 1,048
Other 2015-2039 Varies 148 172
Total $14,967 9,633
(a) Qualify as Tier II capital for regulatory capital purposes.
(b) Qualify as Tier I capital for regulatory capital purposes. Refer to Note 28 for further information. .
The Bancorp pays down long-term debt in accordance with contractual terms over maturity periods summarized in the above table. The aggregate
annual maturities of long-term debt obligations (based on final maturity dates) as of December 31, 2014, are presented in the following table:
($ in millions) Parent Subsidiaries Total
2015 $ - 702 702
2016 1,250 2,768 4,018
2017 539 1,942 2,481
2018 544 1,407 1,951
2019 499 1,199 1,698
Thereafter 2,562 1,555 4,117
Total $ 5,394 9,573 14,967
At December 31, 2014, the Bancorp had outstanding principal
balances of $14.6 billion, net discounts of $25 million and additions
for mark-to-market adjustments on its hedged debt of $407 million.
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.
The Bancorp was in compliance with all debt covenants at
December 31, 2014.
PARENT COMPANY LONG-TERM BORROWINGS
Senior Notes
On January 25, 2011, the Bancorp issued and sold $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 and sold $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 amounts of the notes will be due upon maturity on