BB&T 2009 Annual Report Download - page 122

BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(1) Subordinated notes that qualify under the risk-based capital guidelines as Tier 2 supplementary capital, subject to
certain limitations.
(2) Securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations.
(3) These fixed rate notes were swapped to floating rates based on LIBOR. At December 31, 2009, the effective rates
paid on these borrowings ranged from .41% to .81%.
(4) At December 31, 2009, $800 million of these advances were swapped to a floating rate based on LIBOR. The
weighted average cost of these advances was 3.49%, or 3.21% including the effect of the swapped portion, and the
weighted average maturity was 7.0 years.
(5) These securities are fixed rate through June 12, 2037 and then switch to a floating rate based on LIBOR.
(6) $360 million of this issuance was swapped to a floating rate based on LIBOR. At December 31, 2009, the effective
rate on the swapped portion was 3.62%.
(7) These securities were issued by companies acquired by BB&T. At December 31, 2009, the effective rate paid on
these borrowings ranged from 1.95% to 10.07%. These securities have varying maturities through 2035.
(8) These floating-rate securities are based on LIBOR and had an effective rate of .57% as of December 31, 2009.
Excluding the capitalized leases set forth in Note 6, future debt maturities total $326 million, $2.2 billion, $1.5
billion, $1.6 billion and $1.0 billion for the next five years. The maturities for 2015 and later years total $14.7
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 12, 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
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