BB&T 2009 Annual Report Download - page 123

BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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.
In July 2009, BB&T Capital Trust VI (“BBTCT VI”) issued $575 million of Capital Securities, with a fixed
interest rate of 9.60% through August 1, 2064 and a floating rate, if extended, through August 1, 2069. BBTCT VI, 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 VI’s obligations under the Trust and Capital Securities. BBTCT VI’s sole asset is
the Junior Subordinated Debentures issued by BB&T which have an initial maturity on August 1, 2064 and a final
maturity date on August 1, 2069. 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 August 1, 2014. The Capital Securities of BBTCT VI are subject to mandatory redemption
in whole, or in part, upon repayment of the Junior Subordinated Debentures at maturity or their earlier redemption.
In October 2009, BB&T Capital Trust VII (“BBTCT VII”) issued $350 million of Capital Securities, with a
fixed interest rate of 8.10%. BBTCT VII, 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 VII’s
obligations under the Trust and Capital Securities. BBTCT VII’s sole asset is the Junior Subordinated
Debentures issued by BB&T which have an initial maturity on November 1, 2064 and a final maturity date on
November 1, 2069. 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 November 1, 2014. The Capital Securities of BBTCT VII 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 are subject to mandatory redemption in whole
on June 15, 2027, or such earlier date in the event the Junior Subordinated Debentures are redeemed by BB&T
pursuant to one of the prescribed limited circumstances or pursuant to the call provisions.
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