Note 12 Short-term Borrowings and Long-term Debt
Short-term Borrowings
Bank of America Corporation and certain other subsidiaries issue commercial paper in order to meet short-term funding needs. Commercial paper outstanding at December 31, 2006 was $41.2 billion compared to $25.0 billion at December 31, 2005.
Bank of America, N.A. maintains a domestic program to offer up to a maximum of $50.0 billion, at any one time, of bank notes with fixed or floating rates and maturities of at least seven days from the date of issue. Short-term bank notes outstanding under this program totaled $24.5 billion at December 31, 2006, compared to $22.5 billion at December 31, 2005. These short-term bank notes, along with Treasury tax and loan notes, term federal funds purchased and commercial paper, are reflected in Commercial Paper and Other Short-term Borrowings on the Consolidated Balance Sheet.
Long-term Debt
The following table presents the balance of Long-term Debt at December 31, 2006 and 2005 and the related rates and maturity dates at December 31, 2006:
December 31 | ||
---|---|---|
(Dollars in millions) | 2006 | 2005 |
Notes issued by Bank of America Corporation | ||
Senior notes: | ||
Fixed, with a weighted average rate of 4.51%, ranging from 0.84% to 7.50%, due 2007 to 2043
|
$ |
$ |
Floating, with a weighted average rate of 4.93%, ranging from 0.72% to 6.78%, due 2007 to 2041
|
26,695 | 19,050 |
Subordinated notes: | ||
Fixed, with a weighted average rate of 6.08%, ranging from 2.94% to 10.20%, due 2007 to 2037
|
23,896 | 20,596 |
Floating, with a weighted average rate of 5.69%, ranging from 5.11% to 5.70% due 2016 to 2019
|
510 | 10 |
Junior subordinated notes (related to trust preferred securities): | ||
Fixed, with a weighted average rate of 6.77%, ranging from 5.25% to 11.45%, due 2026 to 2055
|
13,665 | 10,337 |
Floating, with a weighted average rate of 6.07%, ranging from 5.92% to 8.72%, due 2027 to 2033
|
2,203 | 1,922 |
Total notes issued by Bank of America Corporation
|
105,556 | 88,272 |
Notes issued by Bank of America, N.A. and other subsidiaries | ||
Senior notes: | ||
Fixed, with a weighted average rate of 5.03%, ranging from 0.93% to 11.30%, due 2007 to 2033
|
6,450 | 1,096 |
Floating, with a weighted average rate of 5.28%, ranging from 3.69% to 6.78%, due 2007 to 2051
|
22,219 | 4,985 |
Subordinated notes: | ||
Fixed, with a weighted average rate of 6.36%, ranging from 5.75% to 7.13%, due 2007 to 2036
|
4,294 | 1,871 |
Floating, with a weighted average rate of 5.63%, ranging from 5.36% to 5.64%, due 2016 to 2019
|
918 | 8 |
Total notes issued by Bank of America, N.A. and other subsidiaries
|
33,881 | 7,960 |
Notes issued by NB Holdings Corporation | ||
Junior subordinated notes (related to trust preferred securities): | ||
Fixed, with a weighted average rate of 8.02%, ranging from 7.95% to 8.06%, due 2026
|
515 | 515 |
Floating, 6.00%, due 2027
|
258 | 258 |
Total notes issued by NB Holdings Corporation
|
773 | 773 |
Other debt | ||
Advances from the Federal Home Loan Bank of Atlanta | ||
Floating, 5.49%, due 2007
|
500 | 2,750 |
Advances from the Federal Home Loan Bank of New York | ||
Fixed, with a weighted average rate of 6.07%, ranging from 4.00% to 8.29%, due 2007 to 2016
|
285 | 296 |
Advances from the Federal Home Loan Bank of Seattle | ||
Fixed, with a weighted average rate of 6.34%, ranging from 5.40% to 7.42%, due 2007 to 2031
|
125 | 578 |
Floating, with a weighted average rate of 5.33%, ranging from 5.30% to 5.35%, due 2007 to 2008
|
3,200 | |
Advances from the Federal Home Loan Bank of Boston | ||
Fixed, with a weighted average rate of 5.83%, ranging from 1.00% to 7.72%, due 2007 to 2026
|
146 | 178 |
Floating, with a weighted average rate of 5.43%, ranging from 5.30% to 5.50%, due 2008 to 2009
|
1,500 | |
Other | 34 | 41 |
Total other debt
|
5,790 | 3,843 |
Total long-term debt
|
$ |
$ |
The majority of the floating rates are based on three- and six-month London InterBank Offered Rates (LIBOR). Bank of America Corporation and Bank of America, N.A. maintain various domestic and international debt programs to offer both senior and subordinated notes. The notes may be denominated in U.S. dollars or foreign currencies. At December 31, 2006 and 2005, the amount of foreign currency denominated debt translated into U.S. dollars included in total long-term debt was $37.8 billion and $23.1 billion. Foreign currency contracts are used to convert certain foreign currency denominated debt into U.S. dollars.
At December 31, 2006 and 2005, Bank of America Corporation was authorized to issue approximately $58.1 billion and $27.0 billion of additional corporate debt and other securities under its existing shelf registration statements. At December 31, 2006 and 2005, Bank of America, N.A. was authorized to issue approximately $30.8 billion and $9.5 billion of bank notes and Euro medium-term notes.
The weighted average effective interest rates for total long-term debt, total fixed-rate debt and total floating-rate debt (based on the rates in effect at December 31, 2006) were 5.32 percent, 5.41 percent and 5.18 percent, respectively, at December 31, 2006 and (based on the rates in effect at December 31, 2005) were 5.22 percent, 5.53 percent and 4.31 percent, respectively, at December 31, 2005. These obligations were denominated primarily in U.S. dollars.
Aggregate annual maturities of long-term debt obligations (based on final maturity dates) at December 31, 2006 are as follows:
(Dollars in millions) | 2007 | 2008 | 2009 | 2010 | 2011 | Thereafter | Total |
---|---|---|---|---|---|---|---|
Bank of America Corporation |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
Bank of America, N.A. and other subsidiaries | 11,158 | 13,279 | 1,705 | 871 | 162 | 6,706 | 33,881 |
NB Holdings Corporation | | | | | | 773 | 773 |
Other | 1,659 | 2,668 | 1,019 | 234 | 4 | 206 | 5,790 |
Total
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
Trust Preferred Securities
Trust preferred securities (Trust Securities) are issued by the trust companies (the Trusts), which are not consolidated. These Trust Securities are mandatorily redeemable preferred security obligations of the Trusts. The sole assets of the Trusts are Junior Subordinated Deferrable Interest Notes of the Corporation (the Notes). The Trusts are 100 percent owned finance subsidiaries of the Corporation. Obligations associated with the Notes are included in the Long-term Debt table above. See Note 15 of the Consolidated Financial Statements for a discussion regarding the treatment for regulatory capital purposes of the Trust Securities.
At December 31, 2006, the Corporation had 38 Trusts which have issued Trust Securities to the public. Certain of the Trust Securities were issued at a discount and may be redeemed prior to maturity at the option of the Corporation. The Trusts have invested the proceeds of such Trust Securities in the Notes. Each issue of the Notes has an interest rate equal to the corresponding Trust Securities distribution rate. The Corporation has the right to defer payment of interest on the Notes at any time or from time to time for a period not exceeding five years provided that no extension period may extend beyond the stated maturity of the relevant Notes. During any such extension period, distributions on the Trust Securities will also be deferred, and the Corporation's ability to pay dividends on its common and preferred stock will be restricted.
The Trust Securities are subject to mandatory redemption upon repayment of the related Notes at their stated maturity dates or their earlier redemption at a redemption price equal to their liquidation amount plus accrued distributions to the date fixed for redemption and the premium, if any, paid by the Corporation upon concurrent repayment of the related Notes.
Periodic cash payments and payments upon liquidation or redemption with respect to Trust Securities are guaranteed by the Corporation to the extent of funds held by the Trusts (the Preferred Securities Guarantee). The Preferred Securities Guarantee, when taken together with the Corporation's other obligations, including its obligations under the Notes, will constitute a full and unconditional guarantee, on a subordinated basis, by the Corporation of payments due on the Trust Securities.
The following table is a summary of the outstanding Trust Securities and the Notes at December 31, 2006 as originated by Bank of America Corporation and the predecessor banks.
(Dollars in millions) | |||||||
---|---|---|---|---|---|---|---|
Issuer | Issuance Date | Aggregate Principal Amount of Trust Securities |
Aggregate Principal Amount of the Notes |
Stated Maturity of the Notes |
Per Annum Interest Rate of the Notes |
Interest Payment Dates |
Redemption Period |
Bank of America | |||||||
Capital Trust I | December 2001 |
$ |
$ |
December 2031 |
7.00 % |
3/15,6/15,9/15,12/15 | On or after 12/15/06 |
Capital Trust II | January 2002 | 900 | 928 | February 2032 | 7.00 | 2/1, 5/1,8/1,11/1 | On or after 2/01/07 |
Capital Trust III | August 2002 | 500 | 516 | August 2032 | 7.00 | 2/15, 5/15,8/15,11/15 | On or after 8/15/07 |
Capital Trust IV | April 2003 | 375 | 387 | May 2033 | 5.88 | 2/1, 5/1,8/1,11/1 | On or after 5/01/08 |
Capital Trust V | November 2004 | 518 | 534 | November 2034 | 6.00 | 2/3, 5/3,8/3,11/3 | On or after 11/03/09 |
Capital Trust VI | March 2005 | 1,000 | 1,031 | March 2035 | 5.63 | 3/8,9/8 | Any time |
Capital Trust VII | August 2005 | 1,665 | 1,717 | August 2035 | 5.25 | 2/10,8/10 | Any time |
Capital Trust VIII | August 2005 | 530 | 546 | August 2035 | 6.00 | 2/25,5/25,8/25,11/25 | On or after 8/25/10 |
Capital Trust X | March 2006 | 900 | 928 | March 2055 | 6.25 | 3/29,6/29,9/29,12/29 | On or after 3/29/11 |
Capital Trust XI | May 2006 | 1,000 | 1,031 | May 2036 | 6.63 | 5/23,11/23 | Any time |
Capital Trust XII | August 2006 | 863 | 890 | August 2055 | 6.88 | 2/2,5/2,8/2,11/2 | On or after 8/02/11 |
NationsBank | |||||||
Capital Trust II |
December 1996 | 365 | 376 | December 2026 | 7.83 | 6/15,12/15 | On or after 12/15/06 |
Capital Trust III | February 1997 | 500 | 515 | January 2027 | 3-mo. LIBOR +55 bps | 1/15,4/15,7/15,10/15 | On or after 1/15/07 |
Capital Trust IV | April 1997 | 500 | 515 | April 2027 | 8.25 | 4/15,10/15 | On or after 4/15/07 |
BankAmerica | |||||||
Institutional Capital A
|
November 1996 | 450 | 464 | December 2026 | 8.07 | 6/30,12/31 | On or after 12/31/06 |
Institutional Capital B
|
November 1996 | 300 | 309 | December 2026 | 7.70 | 6/30,12/31 | On or after 12/31/06 |
Capital II | December 1996 | 450 | 464 | December 2026 | 8.00 | 6/15,12/15 | On or after 12/15/06 |
Capital III | January 1997 | 400 | 412 | January 2027 | 3-mo. LIBOR +57 bps | 1/15,4/15, 7/15,10/15 | On or after 1/15/02 |
Barnett | |||||||
Capital I | November 1996 | 300 | 309 | December 2026 | 8.06 | 6/1,12/1 | On or after 12/01/06 |
Capital II | December 1996 | 200 | 206 | December 2026 | 7.95 | 6/1,12/1 | On or after 12/01/06 |
Capital III | January 1997 | 250 | 258 | February 2027 | 3-mo. LIBOR +62.5 bps | 2/1,5/1,8/1,11/1 | On or after 2/01/07 |
Fleet | |||||||
Capital Trust II | December 1996 | 250 | 258 | December 2026 | 7.92 | 6/15,12/15 | On or after 12/15/06 |
Capital Trust V | December 1998 | 250 | 258 | December 2028 | 3-mo. LIBOR +100 bps | 3/18, 6/18,9/18, 12/18 | On or after 12/18/03 |
Capital Trust VIII | March 2002 | 534 | 550 | March 2032 | 7.20 | 3/15, 6/15,9/15,12/15 | On or after 3/08/07 |
Capital Trust IX | July 2003 | 175 | 180 | August 2033 | 6.00 | 2/1, 5/1,8/1,11/1 | On or after 7/31/08 |
BankBoston | |||||||
Capital Trust I | November 1996 | 250 | 258 | December 2026 | 8.25 | 6/15,12/15 | On or after 12/15/06 |
Capital Trust II | December 1996 | 250 | 258 | December 2026 | 7.75 | 6/15,12/15 | On or after 12/15/06 |
Capital Trust III | June 1997 | 250 | 258 | June 2027 | 3-mo. LIBOR +75 bps | 3/15, 6/15,9/15,12/15 | On or after 6/15/07 |
Capital Trust IV | June 1998 | 250 | 258 | June 2028 | 3-mo. LIBOR +60 bps | 3/8, 6/8,9/8,12/8 | On or after 6/08/03 |
Summit | |||||||
Capital Trust I | March 1997 | 150 | 155 | March 2027 | 8.40 | 3/15,9/15 | On or after 3/15/07 |
Progress | |||||||
Capital Trust I | June 1997 | 9 | 9 | June 2027 | 10.50 | 6/1,12/1 | On or after 6/01/07 |
Capital Trust II | July 2000 | 6 | 6 | July 2030 | 11.45 | 1/19,7/19 | On or after 7/19/10 |
Capital Trust III | November 2002 | 10 | 10 | November 2032 | 3-mo. LIBOR +335 bps | 2/15,5/15,8/15,11/15 | On or after 11/15/07 |
Capital Trust IV | December 2002 | 5 | 5 | January 2033 | 3-mo. LIBOR +335 bps | 1/7, 4/7,7/7,10/7 | On or after 1/07/08 |
MBNA | |||||||
Capital Trust A | December 1996 | 250 | 258 | December 2026 | 8.28 | 6/1,12/1 | On or after 12/01/06 |
Capital Trust B | January 1997 | 280 | 289 | February 2027 | 3-mo. LIBOR +80 bps | 2/1,5/1,8/1,11/1 | On or after 2/01/07 |
Capital Trust D | June 2002 | 300 | 309 | October 2032 | 8.13 | 1/1,4/1,7/1,10/1 | On or after 10/01/07 |
Capital Trust E | November 2002 | 200 | 206 | February 2033 | 8.10 | 2/15,5/15,8/15,11/15 | On or after 2/15/08 |
Total
|
$ |
$ |