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Table of Contents
Index to Financial Statements
Other borrowings also includes $17.6 million of overnight and other short-term borrowings from the Federal Reserve Bank in connection
with the Federal Reserve Bank’
s special direct investment and treasury, tax and loan programs. The Company pledged $2.0 billion of securities
and RV loans to secure these borrowings.
Information about borrowings under fixed- and variable- rate coupon repurchase agreements and other short-term borrowings is
summarized as follows (in thousands):
NOTE 17—SENIOR NOTES AND CONVERTIBLE SUBORDINATED NOTES
December 31,
2004
2003
Weighted
-
average balance during the year (calculated on a daily basis)
$
8,139,736
$
5,976,730
Weighted
-
average interest rate:
During the year (calculated on a daily basis)
3.18
%
2.68
%
At year
-
end
2.15
%
1.46
%
Maximum month
-
end balance during the year
$
10,285,738
$
6,888,441
Balance at year
-
end
$
10,169,763
$
5,567,163
Securities and loans underlying the repurchase agreements at the end of the year:
Carrying value, including accrued interest
$
10,001,607
$
5,485,984
Estimated market value
$
9,958,744
$
5,477,099
The Company’s long-term debt by type is shown below (in thousands):
8.00% Senior Notes Due June 2011
December 31,
2004
2003
Senior 8.00% Notes, due 2011
$
400,452
$
—
Convertible subordinated notes:
6.75% Notes, due 2008
—
325,000
6.00% Notes, due 2007
185,165
370,330
Total convertible subordinated notes
185,165
695,330
Total senior and convertible subordinated notes
$
585,617
$
695,330
In June 2004, the Company completed a private offering of an aggregate principal amount of $400 million in senior notes due June 2011
(the “8.00% Notes”). The 8.00% Notes bear interest at 8.00%, payable semi-annually, and are non-callable for four years and may then be
called by the Company at a premium, which declines over time. Original debt issuance costs of $8.2 million are included in other assets and are
being amortized over the term of the 8.00% Notes. The Company entered into an interest rate swap agreement effective December 1, 2004 on
$50 million of the 8.00% Notes. Under this swap agreement, the Company pays a variable rate of interest based on 3 month LIBOR plus
3.49%. The swap agreement is treated as an effective fair value hedge pursuant to SFAS No. 133. Accordingly, the change in fair value of the
swap agreement of $0.5 million was included as part of the outstanding balance of the 8.00% Notes as of December 31, 2004.
6.75% Convertible Subordinated Notes Due May 2008
In May 2001, the Company completed a private offering of an aggregate principal amount of $325 million of the 6.75% convertible
subordinated notes due May 2008 (the “6.75% Notes”). The 6.75% Notes were convertible, at the option of the holder, into a total of
approximately 29.7 million shares of the Company’s common stock at a conversion price of $10.925 per share. The 6.75% Notes bore interest
at 6.75%, payable
98