US Bank 2005 Annual Report Download - page 84

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In December 2005, the Company issued floating-rate In October 2004, the Company’s subsidiary U.S. Bank
convertible senior debentures of $2.0 billion, due National Association (‘‘USBNA’’) issued $650 million of
December 11, 2035. These debentures bear interest at a fixed-rate subordinated notes due October 30, 2014. The
floating-rate equal to three-month LIBOR, minus interest rate is 4.95 percent per annum. In January of 2005,
1.46 percent, payable quarterly until December 11, 2030. USBNA issued $200 million of fixed-rate subordinated
After that date, the Company will not pay interest on the notes due October 30, 2014. The interest rate is
debentures prior to maturity. On the maturity date or 4.95 percent per annum. In March 2005, USBNA issued
certain earlier redemption dates, the holder will receive the $150 million of fixed-rate subordinated debentures due
original principal amount of $1,000 per debenture plus October 30, 2014. The interest rate is 4.95 percent per
accrued interest. At December 31, 2005, the interest rate annum. In August 2005, USBNA issued $370 million of
was 3.00 percent. The debentures are callable anytime on or fixed-rate subordinated notes in foreign denomination due
after December 11, 2006, at a price equal to 100 percent of August 9, 2015. The interest rate is 3.80 percent per
the accreted principle amount plus accrued and unpaid annum. The Company presents these foreign notes in
interest and putable December 11, 2006, March 11, 2007, U.S. dollars on the balance sheet.
June 11, 2007, September 11, 2007, December 11, 2007, In October 2004, USBNA issued floating-rate
2010, and every five years, thereafter, until maturity at a subordinated notes of $350 million, due October 14, 2014.
price equal to 100 percent of the accreted principle amount These notes bear floating-rate interest of three-month
plus accrued and unpaid interest. The debentures are LIBOR plus .28 percent. The interest rate at December 31,
convertible at any time on or prior to the maturity date at 2005, was 4.42 percent. In January 2005, USBNA issued
an initial conversion rate of 27.1370 shares for each $1,000 floating-rate subordinated notes of $200 million, due
debenture. This results in a conversion price of October 14, 2014. These notes bear floating-rate interest of
approximately $36.85 per share and represents a premium three-month LIBOR plus .28 percent. The interest rate at
of 20 percent over the closing sale price of $30.71 per share December 31, 2005, was 4.42 percent.
on December 5, 2005. If converted, holders of the Federal Home Loan Bank (‘‘FHLB’’) advances
convertible debentures will generally receive cash up to the outstanding at December 31, 2005, mature from August
accreted principal amount of the debentures and, if the 2006 through September 2035. The advances bear fixed or
market price of the Company’s common stock exceeds the floating interest rates ranging from .50 percent to
conversion price in effect on the conversion date, holders 8.25 percent. The Company has an arrangement with the
will also receive a number of shares of the Company’s FHLB whereby based on collateral available (residential and
common stock, or the equivalent amount in cash at the commercial mortgages), the Company could have borrowed
option of the Company, per debenture as determined an additional $23.0 billion at December 31, 2005. The
pursuant to a specified formula. weighted-average interest rate of FHLB advances at
Medium-term notes (‘‘MTNs’’) outstanding at December 31, 2005, was 4.47 percent.
December 31, 2005, mature from March 2006 through July Bank notes outstanding at December 31, 2005, mature
2010. The MTNs bear fixed interest rates ranging from from February 2006 through March 2009. The bank notes
2.63 percent to 5.10 percent. The weighted-average interest bear fixed or floating interest rates ranging from
rate of MTNs at December 31, 2005, was 3.82 percent. 2.40 percent to 4.55 percent. The weighted-average interest
In March 2005, the Company issued $275 million of rate of bank notes at December 31, 2005, was 4.09 percent.
fixed-rate junior subordinated debentures due March 9, During 2005, the Company prepaid long-term debt,
2035. The interest rate is 5.75 percent per annum. In including subordinated notes and junior subordinated
August 2005, the Company issued $300 million of fixed- debentures, of $.7 billion in connection with asset/liability
rate junior subordinated debentures due August 15, 2035. management decisions, incurring $54 million in prepayment
The interest rate is 5.875 percent per annum. In December charges.
2005, the Company also issued $375 million of fixed-rate
junior subordinated debentures due December 29, 2065.
The interest rate is 6.35 percent per annum.
82 U.S. BANCORP