US Bank 2011 Annual Report Download - page 100

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The Company has arrangements with the Federal Home
Loan Bank and Federal Reserve Bank whereby the Company
could have borrowed an additional $56.4 billion and $48.1
billion at December 31, 2011 and 2010, respectively, based on
collateral available.
Maturities of long-term debt outstanding at December 31,
2011, were:
(Dollars in Millions)
Parent
Company Consolidated
2012 ......................................... $ 2,672 $ 7,046
2013 ......................................... 2,848 3,338
2014 ......................................... 1,499 4,158
2015 ......................................... 1,747 3,041
2016 ......................................... 1,945 4,016
Thereafter ................................... 3,882 10,354
Total ......................................... $14,593 $31,953
NOTE 14 Junior Subordinated Debentures
As of December 31, 2011, the Company sponsored, and
wholly owned 100 percent of the common equity of, five
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 these trusts, which totaled $2.7 billion,
are the sole assets of these trusts. 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 addition, as of December 31, 2011, the Company
sponsored, and wholly owned 100 percent of the common
equity of, USB Capital IX, a wholly-owned unconsolidated
trust, formed for the purpose of issuing redeemable ITS to
third party investors, originally investing the proceeds in
Debentures issued by the Company and entering into stock
purchase contracts to purchase preferred stock in the future.
The Company's obligations under the transaction documents,
taken together, have the effect of providing a full and
unconditional guarantee by the Company, on a subordinated
basis, of the payment obligations of the trust. During 2010,
the Company exchanged depositary shares representing an
ownership interest in the Company's Series A Preferred Stock
to acquire a portion of the ITS issued by USB Capital IX. This
exchange allowed the Company to retire $575 million of the
Debentures and cancel a pro-rata portion of stock purchase
contracts. During 2011, USB Capital IX sold the remaining
$676 million of Debentures to investors to generate cash
proceeds to be used to purchase the Company's Series A
Preferred Stock pursuant to the stock purchase contracts. As
of December 31, 2011, $676 million of the Company's Series
A Preferred Stock is the sole asset of USB Capital IX.
The following table is a summary of the securities issued and, the Debentures held by five of the trusts included in long-term debt,
as of December 31, 2011:
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 675 – N/A N/A N/A N/A
USB Capital VIII .......... December 2005 375 387 Fixed 6.35 December 2065 December 29, 2010
Total ................... $3,350 $2,691
98 U.S. BANCORP