Annual report pursuant to Section 13 and 15(d)

LONG-TERM DEBT

v3.8.0.1
LONG-TERM DEBT
12 Months Ended
Dec. 31, 2017
Debt Instruments [Abstract]  
LONG-TERM DEBT
LONG-TERM DEBT
Huntington’s long-term debt consisted of the following:
 
At December 31,
(dollar amounts in millions)
2017
 
2016
The Parent Company:
 
 
 
Senior Notes:
 
 
 
3.19% Huntington Bancshares Incorporated medium-term notes due 2021
$
969

 
$
973

2.33% Huntington Bancshares Incorporated senior note due 2022
953

 
954

2.64% Huntington Bancshares Incorporated senior note due 2018
399

 
399

Subordinated Notes:
 
 
 
7.00% Huntington Bancshares Incorporated subordinated notes due 2020
312

 
320

3.55% Huntington Bancshares Incorporated subordinated notes due 2023
245

 
248

Sky Financial Capital Trust IV 3.09% junior subordinated debentures due 2036 (1)
74

 
74

Sky Financial Capital Trust III 3.09% junior subordinated debentures due 2036 (1)
72

 
72

Huntington Capital I Trust Preferred 2.39% junior subordinated debentures due 2027 (2)
69

 
69

Huntington Capital II Trust Preferred 2.32% junior subordinated debentures due 2028 (3)
31

 
32

Camco Financial Statutory Trust I 3.02% due 2037 (4)
4

 
4

Total notes issued by the parent
3,128

 
3,145

The Bank:
 
 
 
Senior Notes:
 
 
 
2.24% Huntington National Bank senior notes due 2018
844

 
844

2.10% Huntington National Bank senior notes due 2018
748

 
747

2.47% Huntington National Bank senior notes due 2020
694

 

2.55% Huntington National Bank senior notes due 2022
685

 

2.43% Huntington National Bank senior notes due 2020
498

 
498

2.23% Huntington National Bank senior note due 2019
497

 
500

1.75% Huntington National Bank senior notes due 2018
496

 
500

2.97% Huntington National Bank senior notes due 2020
492

 
495

2.20% Huntington National Bank senior notes due 2020 (5)
300

 

5.04% Huntington National Bank medium-term notes due 2018
35

 
36

2.23% Huntington National Bank senior note due 2017

 
499

1.42% Huntington National Bank senior notes due 2017 (6)

 
250

Subordinated Notes:
 
 
 
3.86% Huntington National Bank subordinated notes due 2026
238

 
239

6.67% Huntington National Bank subordinated notes due 2018
129

 
132

5.45% Huntington National Bank subordinated notes due 2019
77

 
81

Total notes issued by the bank
5,733

 
4,821

FHLB Advances:
 
 
 
3.51% weighted average rate, varying maturities greater than one year
7

 
8

Other:
 
 
 
Huntington Technology Finance nonrecourse debt, 3.63% effective interest rate, varying maturities
263

 
278

3.57% Huntington Preferred Capital II - Class F securities (7)
75

 

Huntington Technology Finance ABS Trust 2014 1.70% due 2020

 
57

Total other
338

 
335

Total long-term debt
$
9,206

 
$
8,309

(1)
Variable effective rate at December 31, 2017, based on three-month LIBOR +1.400%.
(2)
Variable effective rate at December 31, 2017, based on three-month LIBOR +0.70%
(3)
Variable effective rate at December 31, 2017, based on three-month LIBOR +0.625%.
(4)
Variable effective rate at December 31, 2017, based on three-month LIBOR +1.33%.
(5)
Variable effective rate at December 31, 2017, based on three-month LIBOR + 0.51%
(6)
Variable effective rate at December 31, 2017, based on three-month LIBOR +0.425%.
(7)
Variable effective rate at December 31, 2017, based on three-month LIBOR + 1.880%.
Amounts above are net of unamortized discounts and adjustments related to hedging with derivative financial instruments. The derivative instruments, principally interest rate swaps, are used to hedge the fair values of certain fixed-rate debt by converting the debt to a variable rate. See Note 18 for more information regarding such financial instruments.
In March 2017, the Bank issued $0.7 billion of senior notes at 99.994% of face value. The senior notes mature on March 10, 2020 and have a fixed coupon rate of 2.375%. The senior notes may be redeemed one month prior to the maturity date at 100% of principal plus accrued and unpaid interest. Also, in March 2017, the Bank issued $0.3 billion of senior notes at 100% of face value. The senior notes mature on March 10, 2020 and have a variable coupon rate of three month LIBOR + 51 basis points.
In August 2017, the Bank issued $0.7 billion of senior notes at 99.762% of face value. The senior notes mature on August 7, 2022 and have a fixed coupon rate of 2.50%. The senior notes may be redeemed one month prior to the maturity date at 100% of principal plus accrued and unpaid interest.
In August 2016, FirstMerit Parent Company and Bank subordinated debt with a fair value totaling $520 million was acquired by Huntington as part of the acquisition.
In August 2016, Huntington issued $1.0 billion of senior notes at 99.849% of face value. The senior notes mature on January 14, 2022 and have a fixed coupon rate of 2.3%.
In March 2016, Huntington issued $1.0 billion of senior notes at 99.803% of face value. The senior notes mature on March 14, 2021 and have a fixed coupon rate of 3.15%.
Long-term debt maturities for the next five years and thereafter are as follows:
(dollar amounts in millions)
2018
 
2019
 
2020
 
2021
 
2022
 
Thereafter
 
Total
The Parent Company:
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes
$
400

 
$

 
$

 
$
1,000

 
$
1,000

 
$

 
$
2,400

Subordinated notes

 

 
300

 

 

 
504

 
804

The Bank:
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes
2,135

 
500

 
2,000

 

 
700

 

 
5,335

Subordinated notes
125

 
76

 

 

 

 
325

 
526

FHLB Advances
1

 

 
2

 

 

 
4

 
7

Other
27

 
43

 
95

 
48

 
50

 

 
263

Total
$
2,688

 
$
619

 
$
2,397

 
$
1,048

 
$
1,750

 
$
833

 
$
9,335


These maturities are based upon the par values of the long-term debt.
The terms of the long-term debt obligations contain various restrictive covenants including limitations on the acquisition of additional debt in excess of specified levels, dividend payments, and the disposition of subsidiaries. As of December 31, 2017, Huntington was in compliance with all such covenants.