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| AmSouth
Bancorporation and Subsidiaries Notes to Consolidated Financial Statements |
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The 6.75% Subordinated Debentures Due November 1, 2025, were issued November 6, 1995, at a discounted price of 99.883 percent. The net proceeds to AmSouth after commissions totaled $148,900,000. The debentures will mature on November 1, 2025, and may be redeemed on November 1, 2005, at the option of the registered holders thereof. AmSouth purchased interest rate swaps in the notional amount of $150,000,000 to hedge the fair value of these debentures. These swaps require AmSouth to pay a variable rate based on the 30-day LIBOR while receiving a fixed rate. The 7.75% Subordinated Notes Due 2004 were issued May 19, 1994, at a discounted price of 99.389 percent. The net proceeds to AmSouth after commissions totaled $148,100,000. The notes will mature on May 15, 2004, and are not redeemable prior to maturity. The 7.25% Senior Notes Due 2006, were issued April 26, 1996, at a discounted price of 99.381 percent. The net proceeds to AmSouth after commissions totaled $98,731,000. The notes will mature May 1, 2006, and are not redeemable prior to maturity. |
The 6.875% Subordinated Notes Due 2003 were issued April
22, 1993, at a discounted price of 99.36 percent. The net proceeds to
AmSouth after commissions totaled $49,355,000. The notes will mature April
15, 2003, and are not redeemable prior to maturity.
The 6.625% Subordinated Notes Due 2005 were issued December 18, 1995, at a discounted price of 99.675 percent. The net proceeds to AmSouth after commissions totaled $49,512,500. The notes will mature December 18, 2005, and are not redeemable prior to maturity. Long-term notes payable at December 31, 2000, included notes maturing from 2004 to 2012 with interest rates ranging from 5.05 percent to 8.00 percent. The aggregate stated maturities, in thousands, of long-term debt outstanding at December 31, 2000, are summarized as follows: |
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| NOTE 13–OFF-BALANCE
SHEET FINANCIAL AGREEMENTS |
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AmSouth uses a variety of off-balance sheet financial instruments to enable it to manage its exposure to changes in interest rates. AmSouth also enters into similar instruments to help customers manage their exposure to interest rate and foreign currency fluctuations and to finance international activities. Forward contracts provide AmSouth and its customers a means of managing the risks of changing interest and foreign exchange rates. These contracts represent commitments either to purchase or sell securities, loans, other money market instruments or foreign currency at a future date and at a specified price. |
AmSouth is subject to the market risk associated with changes in the value of the underlying financial instrument as well as the credit risk that another party will fail to perform. The gross contract amount of forward contracts represents the extent of AmSouth’s involvement. However, those amounts significantly exceed the future cash requirements as AmSouth intends to close out open trading positions prior to settlement and thus is subject only to the change in value of the instruments. The gross amount of contracts represents AmSouth’s maximum exposure to credit risk. | |||||||||||||||||||||||||||||||||||||||||
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