BB&T 2008 Annual Report Download - page 109

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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 September 2008, BB&T Capital Trust V (“BBTCT V”) issued $450 million of Capital Securities, with a
fixed interest rate of 8.95% through September 15, 2063 and a floating rate, if extended, through September 15,
2068. BBTCT V, 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 V’s obligations under the Trust
and Capital Securities. BBTCT V’s sole asset is the Junior Subordinated Debentures issued by BB&T which have
an initial maturity on September 15, 2063 and a final maturity date on September 15, 2068. The Junior
Subordinated Debentures are subject to early redemption (i) in whole, but not in part, at any time under certain
prescribed limited circumstances or (ii) in whole, or in part, pursuant to the call provisions after September 15,
2013. The Capital Securities of BBTCT V are subject to mandatory redemption in whole, or in part, upon
repayment of the Junior Subordinated Debentures at maturity or their earlier redemption.
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