eTrade 2005 Annual Report Download - page 75

Table of Contents
minimum financial covenants, which we met during 2005. We believe that these restrictions will not have a material effect on our ability
to meet foreseeable funding requirements.
We had outstanding debt of $2.0 billion as of December31, 2005 as follows:
Type
Balance(inmillions)
FixedCouponRate
YearofMaturity
Convertible subordinated notes
$
185.2
6.00
%
2007
Senior notes
504.4
8.00
%
2011
Senior notes
597.5
7
3
/
8
%
2013
Senior notes
300.0
7
7
/
8
%
2015
Mandatory convertible notes
435.6
6
1
/
8
%
2018
Total
$
2,022.7
For information regarding the terms of outstanding borrowings including senior debt, mandatory convertible notes and convertible
subordinated notes, see Note 16 to the Consolidated Financial Statements.
Our current senior debt ratings are B1 (positive outlook) by Moody’s, B+ (positive) by Standard and Poor’s and BB (low) by Dominion
Bond Rating Service (“DBRS”.) The Bank’s long-term deposit ratings are BA2 by Moody’s, BB+ (stable) by Standard and Poor’s and
BB by DBRS. A significant downgrade in these ratings may impact our ability to borrow at current market spreads, at rates considered
acceptable or at all.
Liquidity Available from Subsidiaries
Liquidity available to the parent company from its subsidiaries, other than Converging Arrows, is limited by regulatory requirements of
its subsidiaries. Converging Arrows, an investment company, is a subsidiary of the parent company. The $176.6 million of cash and
investment securities owned by Converging Arrows is available as a source of liquidity for the parent company. Converging Arrows is
not restricted in its dealings with the parent company and may transfer funds to the parent company without regulatory approval. In
addition to the investment company, brokerage and banking subsidiaries may provide liquidity to the parent; however, they are
restricted by regulatory guidelines.
The Bank is prohibited by regulations from lending to the parent company. At December31, 2005, the Bank has approximately $192.5
million of capital available for dividend declaration without regulatory approval while still maintaining “well capitalized” status. The
Bank’s required and actual capital amounts and ratios are presented in the table below (dollars in thousands):
Actual
Required for Capital
Adequacy Purposes
Required to be Well
CapitalizedUnder
Prompt Corrective
Action Provisions
Amount
Ratio
Amount
Ratio
Amount
Ratio
At December31, 2005:
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