Bank of America 2005 Annual Report Download - page 159

BANK OF AMERICA CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements—(Continued)
At December 31, 2005 and 2004, Bank of America Corporation was authorized to issue approximately $27.0 billion
and $37.1 billion of additional corporate debt and other securities under its existing shelf registration statements. At
December 31, 2005 and 2004, Bank of America, N.A. was authorized to issue approximately $9.5 billion and $27.2 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, 2005) were 5.22 percent, 5.53 percent and 4.31 percent, respectively, at
December 31, 2005 and (based on the rates in effect at December 31, 2004) were 4.97 percent, 5.64 percent and 2.69
percent, respectively, at December 31, 2004. 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, 2005 are
as follows:
(Dollars in millions) 2006 2007 2008 2009 2010 Thereafter Total
Bank of America Corporation .................... $ 6,834 $ 5,250 $ 13,998 $ 8,222 $ 11,442 $ 42,526 $ 88,272
Bank of America, N.A. and other subsidiaries ...... 1,615 1,839 2,345 718 50 1,393 7,960
NBHoldingsCorporation ....................... — — — — — 773 773
Other......................................... 2,739 562 71 20 237 214 3,843
Total ..................................... $11,188 $7,651 $16,414 $8,960 $11,729 $44,906 $100,848
Trust Preferred Securities
Trust preferred securities (Trust Securities) are issued by the trust companies (the Trusts) that were deconsolidated
by the Corporation as a result of the adoption of FIN 46R. 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 these securities are included in junior subordinated notes related to Trust Securities in the Long-term
Debt table on page 122. 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, 2005, the Corporation had 32 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.
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