eTrade 2011 Annual Report Download - page 145
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NOTE 13—CORPORATE DEBT
The Company’s corporate debt by type is shown below (dollars in thousands):
Face Value Discount
Fair Value Hedge
Adjustment(1) Net
December 31, 2011
Interest-bearing notes:
7
7
⁄
8
% Notes, due 2015 $ 243,177 $ (1,172) $ 7,394 $ 249,399
6
3
⁄
4
% Notes, due 2016 435,000 (7,419) — 427,581
12
1
⁄
2
% Springing lien notes, due 2017 930,230 (162,903) 6,233 773,560
Total interest-bearing notes 1,608,407 (171,494) 13,627 1,450,540
Non-interest-bearing debt:
0% Convertible debentures, due 2019 43,012 — — 43,012
Total corporate debt $1,651,419 $(171,494) $13,627 $1,493,552
Face Value Discount
Fair Value Hedge
Adjustment(1) Net
December 31, 2010
Interest-bearing notes:
8% Notes, due 2011 $ 3,644 $ — $ — $ 3,644
7
3
⁄
8
% Notes, due 2013 414,665 (2,475) 15,117 427,307
7
7
⁄
8
% Notes, due 2015 243,177 (1,471) 9,273 250,979
12
1
⁄
2
% Springing lien notes, due 2017 930,230 (177,520) 7,283 759,993
Total interest-bearing notes 1,591,716 (181,466) 31,673 1,441,923
Non-interest-bearing debt:
0% Convertible debentures, due 2019 703,958 — — 703,958
Total corporate debt $2,295,674 $(181,466) $31,673 $2,145,881
(1) The fair value hedge adjustment is related to changes in fair value of the debt while in a fair value hedge relationship.
Debt Repayment and Redemption
In 2005 and 2004, the Company issued an aggregate principal amount of $100 million and $400 million in
8% senior notes due June 2011 (“2011 Notes”), respectively. In June 2011, the Company repaid the outstanding
balance of the 8% Notes.
In 2005, the Company issued an aggregate principal amount of $600 million in 7
3
⁄
8
% senior notes due
September 2013 (“2013 Notes”). Interest was payable semi-annually and the notes were non-callable for four
years. In May 2011, the Company redeemed the outstanding balance of the 2013 Notes. The Company recorded a
$3.1 million gain on early extinguishment of debt related to the redemption of the 2013 Notes for the year ended
December 31, 2011.
Debt Exchange
In 2009, the Company exchanged $1.7 billion aggregate principal amount of its interest-bearing corporate
debt for an equal principal amount of newly-issued non-interest-bearing convertible debentures. The Company
recorded a pre-tax non-cash charge of $968.3 million on the early extinguishment of debt related to the Debt
Exchange for the year ended December 31, 2009.
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