US Bank 2009 Annual Report Download - page 96

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Note 13 Long-Term Debt
Long-term debt (debt with original maturities of more than one year) at December 31 consisted of the following:
(Dollars in Millions) Rate Type Rate (a) Maturity Date 2009 2008
U.S. Bancorp (Parent Company)
Subordinated notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 7.50% 2026 $ 199 $ 199
Convertible senior debentures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Floating –% 2035 24 24
Floating –% 2035 447 447
Floating –% 2036 64 64
Floating –% 2037 21 75
Medium-term notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 1.75%-4.50% 2010-2014 4,880 1,350
Floating .28%-.68% 2010-2012 4,435 4,435
Junior subordinated debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 5.54%-10.20% 2031-2067 4,559 4,058
Capitalized lease obligations, mortgage indebtedness and other (b) . . . . (91) 179
Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,538 10,831
Subsidiaries
Subordinated notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 7.125% 2009 – 500
Fixed 6.375% 2011 1,500 1,500
Fixed 6.30% 2014 963 963
Fixed 4.95% 2014 1,000 1,000
Fixed 4.80% 2015 500 500
Fixed 3.80% 2015 369 369
Fixed 4.375% 2017 1,348 1,348
Floating .56% 2014 550 550
Federal Home Loan Bank advances . . . . . . . . . . . . . . . . . . . . . . . . . Fixed .50%-8.25% 2010-2036 4,234 6,415
Floating .18%-.95% 2010-2017 6,833 10,373
Bank notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 5.92% 2012 199 1,286
Floating .004%-.605% 2010-2048 213 2,525
Capitalized lease obligations, mortgage indebtedness and other (b) . . . . 333 199
Subtotal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,042 27,528
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $32,580 $38,359
(a) Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 1.87 percent, 1.84 percent and 2.94 percent, respectively.
(b) Other includes debt issuance fees and unrealized gains and losses and deferred amounts relating to derivative instruments.
Convertible senior debentures issued by the Company pay
interest on a quarterly basis until a specified period of time
(five or nine years prior to the applicable maturity date).
After this date, the Company will not pay interest on the
debentures prior to maturity. On the maturity date or on
any earlier redemption date, the holder will receive the
original principal plus accrued interest. The debentures are
convertible at any time on or prior to the maturity date. If
the convertible senior debentures are converted, holders of
the debentures will generally receive cash up to the accreted
principal amount of the debentures plus, if the market price
of the Company’s common stock exceeds the conversion
price in effect on the date of conversion, a number of shares
of the Company’s common stock, or an equivalent amount
of cash at the Company’s option, as determined in
accordance with specified terms. The convertible senior
debentures are callable by the Company and putable by the
investors at a price equal to 100 percent of the accreted
principal amount plus accrued and unpaid interest. During
2009, investors elected to put debentures with a principal
amount of $54 million back to the Company. At
December 31, 2009, the weighted average conversion price
per share for all convertible issuances was $37.93.
During 2009, the Company issued $501 million of
fixed-rate junior subordinated debentures to a separately
formed wholly-owned trust for the purpose of issuing
Company-obligated mandatorily redeemable preferred
securities at an interest rate of 6.625 percent. Refer to
Note 14, “Junior Subordinated Debentures” for further
information on the nature and terms of these debentures.
There were no such issuances in 2008. There were no
redemptions of junior subordinated debentures in 2009 or
2008.
The Company has an arrangement with the Federal
Home Loan Bank whereby the Company could have
borrowed an additional $17.3 billion and $6.6 billion at
December 31, 2009 and 2008, respectively, based on
collateral available (residential and commercial mortgages).
94 U.S. BANCORP