US Bank 2009 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2009 US Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 143

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

Maturities of long-term debt outstanding at December 31, 2009, were:
(Dollars in Millions)
Parent
Company Consolidated
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,783 $ 6,473
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1,966
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,623 7,064
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 828
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,483 4,248
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,291 12,001
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,538 $32,580
Note 14 Junior Subordinated Debentures
As of December 31, 2009, the Company sponsored, and
wholly owned 100 percent of the common equity of, ten
unconsolidated trusts that were formed for the purpose of
issuing Company-obligated mandatorily redeemable
preferred securities (“Trust Preferred Securities”) to third-
party investors and investing the proceeds from the sale of
the Trust Preferred Securities solely in junior subordinated
debt securities of the Company (the “Debentures”). The
Debentures held by the trusts, which totaled $4.6 billion, are
the sole assets of each trust. The Company’s obligations
under the Debentures and related documents, taken together,
constitute a full and unconditional guarantee by the
Company of the obligations of the trusts. The guarantee
covers the distributions and payments on liquidation or
redemption of the Trust Preferred Securities, but only to the
extent of funds held by the trusts. The Company has the
right to redeem the Debentures in whole or in part, on or
after specific dates, at a redemption price specified in the
indentures plus any accrued but unpaid interest to the
redemption date. The Company used the proceeds from the
sales of the Debentures for general corporate purposes.
In connection with the formation of USB Capital IX,
the trust issued redeemable Income Trust Securities (“ITS”)
to third party investors, investing the proceeds in Debentures
issued by the Company and entered into stock purchase
contracts to purchase preferred stock to be issued by the
Company in the future. Pursuant to the stock purchase
contracts, the Company is required to make contract
payments of .65 percent, also payable semi-annually,
through a specified stock purchase date expected to be
April 15, 2011. Prior to the specified stock purchase date,
the trust is required to remarket and sell the Debentures to
third party investors to generate cash proceeds to satisfy its
obligation to purchase the Company’s Series A Non-
Cumulative Perpetual Preferred Stock (“Series A Preferred
Stock”) pursuant to the stock purchase contracts. The
Series A Preferred Stock, when issued pursuant to the stock
purchase contracts, is expected to pay quarterly dividends
equal to the greater of three-month LIBOR plus 1.02 percent
or 3.50 percent. In connection with this transaction, the
Company also entered into a replacement capital covenant
which restricts the Company’s rights to repurchase the ITS
and to redeem or repurchase the Series A Preferred Stock.
The following table is a summary of the Debentures included in long-term debt as of December 31, 2009:
Issuance Trust (Dollars in Millions) Issuance Date
Securities
Amount
Debentures
Amount Rate Type Rate Maturity Date
Earliest
Redemption Date
USB Capital XIII . . . . . . . . . December 2009 $ 500 $ 501 Fixed 6.63 December 2039 December 15, 2014
USB Capital XII . . . . . . . . . . February 2007 535 536 Fixed 6.30 February 2067 February 15, 2012
USB Capital XI . . . . . . . . . . August 2006 765 766 Fixed 6.60 September 2066 September 15, 2011
USB Capital X . . . . . . . . . . April 2006 500 501 Fixed 6.50 April 2066 April 12, 2011
USB Capital IX . . . . . . . . . . March 2006 1,250 1,251 Fixed 5.54 April 2042 April 15, 2015
USB Capital VIII . . . . . . . . . December 2005 375 387 Fixed 6.35 December 2065 December 29, 2010
USB Capital VII . . . . . . . . . . August 2005 300 309 Fixed 5.88 August 2035 August 15, 2010
USB Capital VI . . . . . . . . . . March 2005 275 284 Fixed 5.75 March 2035 March 9, 2010
Vail Banks Statutory
Trust II . . . . . . . . . . . . . . March 2001 7 7 Fixed 10.18 June 2031 June 8, 2011
Vail Banks Statutory Trust I . . February 2001 17 17 Fixed 10.20 February 2031 February 22, 2011
Total . . . . . . . . . . . . . . . $4,524 $4,559
U.S. BANCORP 95