BB&T 2007 Annual Report Download - page 100

BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Excluding the capitalized leases set forth in Note 6, future debt maturities total $1.0 billion, $523 million, $4.3
billion, $1.2 billion and $519 million for the next five years. The maturities for 2013 and later years total $11.1
billion.
Junior Subordinated Debt to Unconsolidated Trusts
In August 2005, BB&T Capital Trust I (“BBTCT”) issued $500 million of 5.85% Capital Securities. BBTCT, a
statutory business trust created under the laws of the State of Delaware, was formed by BB&T for the sole purpose of
issuing the Capital Securities and investing the proceeds thereof in 5.85% Junior Subordinated Debentures issued by
BB&T. BB&T has made guarantees which, taken collectively, fully, irrevocably, and unconditionally guarantee, on a
subordinated basis, all of BBTCT’s obligations under the Trust and Capital Securities. BBTCT’s sole asset is the Junior
Subordinated Debentures issued by BB&T, which mature August 18, 2035, but are subject to early redemption (i) in
whole or in part at any time at the option of BB&T pursuant to the optional redemption provisions of such security, or
(ii) in whole, but not in part, under certain prescribed limited circumstances. The Capital Securities of BBTCT are
subject to mandatory redemption in whole or in part, upon repayment of the Junior Subordinated Debentures at
maturity or their earlier redemption.
In June 2006, BB&T Capital Trust II (“BBTCT II”) issued $600 million of 6.75% Capital Securities. BBTCT
II, a statutory business trust created under the laws of the State of Delaware, was formed by BB&T for the sole
purpose of issuing the Capital Securities and investing the proceeds thereof in 6.75% Junior Subordinated
Debentures issued by BB&T. BB&T has made guarantees which, taken collectively, fully, irrevocably, and
unconditionally guarantee, on a subordinated basis, all of BBTCT II’s obligations under the Trust and Capital
Securities. BBTCT II’s sole asset is the Junior Subordinated Debentures issued by BB&T which mature June 7,
2036, but are subject to early redemption (i) in whole or in part at any time at the option of BB&T pursuant to the
optional redemption provisions of such security, or (ii) in whole, but not in part, under certain prescribed limited
circumstances. The Capital Securities of BBTCT II are subject to mandatory redemption in whole or in part,
upon repayment of the Junior Subordinated Debentures at maturity or their earlier redemption.
In June 2007, BB&T Capital Trust IV (“BBTCT IV”) issued $600 million of Fixed to Floating rate Capital
Securities, with a fixed interest rate of 6.82% through June 11, 2037. BBTCT IV, a statutory business trust created
under the laws of the State of Delaware, was formed by BB&T for the sole purpose of issuing the Capital Securities
and investing the proceeds thereof in Junior Subordinated Debentures issued by BB&T. BB&T has made guarantees
which, taken collectively, fully, irrevocably, and unconditionally guarantee, on a subordinated basis, all of BBTCT IV’s
obligations under the Trust and Capital Securities. BBTCT IV’s sole asset is the Junior Subordinated Debentures
issued by BB&T which have a scheduled maturity on June 12, 2057 and a final repayment date on June 12, 2077. BB&T
is required to use all commercially reasonable efforts, subject to certain market disruption events, to sell adequate
qualifying capital securities to permit repayment of the debentures in full on the scheduled maturity date. The Junior
Subordinated Debentures are subject to early redemption (i) in whole or in part at any time at the option of BB&T
pursuant to the optional redemption provisions of such security, or (ii) in whole, but not in part, under certain
prescribed limited circumstances. The Capital Securities of BBTCT IV are subject to mandatory redemption in whole
or in part, upon repayment of the Junior Subordinated Debentures at maturity or their earlier redemption.
In July 1997, Mason-Dixon Capital Trust (“MDCT”) issued $20 million of 10.07% Preferred Securities.
MDCT, a statutory business trust created under the laws of the State of Delaware, was formed by Mason-Dixon
Bancshares, Inc., (“Mason-Dixon”) for the sole purpose of issuing the Preferred Securities and investing the
proceeds thereof in 10.07% Junior Subordinated Debentures issued by Mason-Dixon. Mason Dixon, which merged
into BB&T on July 14, 1999, entered into agreements which, taken collectively, fully, irrevocably and
unconditionally guarantee, on a subordinated basis, all of MDCT’s obligations under the Preferred Securities.
MDCT’s sole asset is the Junior Subordinated Debentures issued by Mason-Dixon and assumed by BB&T, which
mature June 15, 2027, but are subject to early mandatory redemption in whole under certain limited
circumstances and are callable in whole or in part anytime after June 15, 2007. The Preferred Securities of MDCT,
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