KeyBank 2013 Annual Report Download - page 215

Short-term credit facilities. We maintain cash on deposit in our Federal Reserve account, which has reduced
our need to obtain funds through various short-term unsecured money market products. This account, which was
maintained at $4.6 billion at December 31, 2013, and the unpledged securities in our investment portfolio
provide a buffer to address unexpected short-term liquidity needs. We also have secured borrowing facilities at
the Federal Home Loan Bank of Cincinnati and the Federal Reserve Bank of Cleveland to satisfy short-term
liquidity requirements. As of December 31, 2013, our unused secured borrowing capacity was $15.5 billion at the
Federal Reserve Bank of Cleveland and $3.5 billion at the Federal Home Loan Bank of Cincinnati.
18. Long-Term Debt
The following table presents the components of our long-term debt, net of unamortized discounts and
adjustments related to hedging with derivative financial instruments. We use interest rate swaps and caps, which
modify the repricing characteristics of certain long-term debt, to manage interest rate risk. For more information
about such financial instruments, see Note 8 (“Derivatives and Hedging Activities”).
December 31,
dollars in millions 2013 2012
Senior medium-term notes due through 2021 (a) $ 2,553 $ 2,653
0.988% Subordinated notes due 2028 (b) 162 162
6.875% Subordinated notes due 2029 (b) 103 117
7.750% Subordinated notes due 2029 (b) 133 152
Total parent company 2,951 3,084
Senior medium-term notes due through 2039 (c) 1,858 129
Senior Euro medium-term notes due through 2013 (d) —26
7.413% Subordinated remarketable notes due 2027 (e) 270 268
5.80% Subordinated notes due 2014 (e) 768 803
4.95% Subordinated notes due 2015 (e) 251 251
5.45% Subordinated notes due 2016 (e) 544 564
5.70% Subordinated notes due 2017 (e) 229 241
4.625% Subordinated notes due 2018 (e) 104 108
6.95% Subordinated notes due 2028 (e) 298 300
Lease financing debt due through 2016 (f) 59
Secured borrowing due through 2018 (g) 58 —
Federal Home Loan Bank advances due through 2036 (h) 224 974
Investment Fund Financing due through 2052 (i) 90 90
Total subsidiaries 4,699 3,763
Total long-term debt $ 7,650 $ 6,847
(a) The senior medium-term notes had weighted-average interest rates of 3.89% at December 31, 2013, and 5.11% at December 31, 2012.
These notes had a combination of fixed and floating interest rates during 2012; however, these notes had fixed interest rates at
December 31, 2013, and 2012. One of the three notes can be redeemed one month prior to its maturity date, while the other two notes
may not be redeemed prior to their maturity dates.
(b) See Note 19 (“Trust Preferred Securities Issued by Unconsolidated Subsidiaries”) for a description of these notes.
(c) Senior medium-term notes had weighted-average interest rates of 1.58% at December 31, 2013, and 5.03% at December 31, 2012. These
notes had a combination of fixed and floating interest rates. Two of the five notes can be redeemed one month prior to their maturity
dates, while the other three notes may not be redeemed prior to their maturity dates. 2013 issuances were at considerably lower rates than
existing debt.
(d) Senior Euro medium-term notes matured during 2013 and had weighted-average interest rates of .64% at December 31, 2012. These
notes had a combination of fixed and floating interest rates based on LIBOR.
(e) These notes are all obligations of KeyBank. Only the subordinated remarketable notes due 2027 may be redeemed prior to their maturity
dates.
(f) Lease financing debt had weighted-average interest rates of 5.99% at December 31, 2013, and 6.20% at December 31, 2012. This
category of debt consists primarily of nonrecourse debt collateralized by leased equipment under operating, direct financing and sales-
type leases.
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