eTrade 2012 Annual Report Download - page 156

NOTE 12—CORPORATE DEBT
Corporate debt at December 31, 2012 and 2011 is outlined in the following table (dollars in thousands):
Face Value Discount
Fair Value Hedge
Adjustment(1) Net
December 31, 2012
Interest-bearing notes:
6
3
⁄ 4 % Notes, due 2016 $ 435,000 $ (5,738) $ — $ 429,262
6% Notes, due 2017 505,000 (4,601) — 500,399
6
3
⁄ 8 % Notes, due 2019 800,000 (7,336) — 792,664
Total interest-bearing notes 1,740,000 (17,675) — 1,722,325
Non-interest-bearing debt:
0% Convertible debentures, due 2019 42,657 — — 42,657
Total corporate debt $1,782,657 $ (17,675) $ — $1,764,982
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
(1) The fair value hedge adjustment is related to changes in fair value of the debt while in a fair value hedge relationship.
6
3
⁄ 4 % Senior Notes due May 2016 (“6
3
⁄ 4 % Notes”)
In May 2011, the Company issued an aggregate principal amount of $435 million in 6
3
⁄ 4 % senior notes due
May 2016. Interest is payable semi-annually.
The Company used the proceeds from the issuance of the 6
3
⁄ 4 % Notes to redeem all of its outstanding 7
3
⁄ 8 %
senior notes due September 2013 (“7
3
⁄ 8 % Notes”) including paying the associated redemption premium, accrued
interest and related fees and expenses. The Company recorded a $3.1 million gain on early extinguishment of
debt related to the redemption of the 7
3
⁄ 8 % Notes for the year ended December 31, 2011.
6% Senior Notes due November 2017 (“6% Notes”) and 6
3
⁄ 8 % Senior Notes due November 2019 (“6
3
⁄ 8 %
Notes”)
In November 2012, the Company issued an aggregate principal amount of $505 million in 6% senior notes
due November 2017 and $800 million in 6
3
⁄ 8 % senior notes due November 2019. Interest is payable
semi-annually and the notes may be called by the Company at a premium, which declines over time.
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