LONG-TERM DEBT
Huntington’s long-term debt consisted of the following:
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At December 31, |
(dollar amounts in millions) |
2018 |
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2017 |
The Parent Company: |
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Senior Notes: |
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3.19% Huntington Bancshares Incorporated medium-term notes due 2021 |
$ |
969 |
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|
$ |
969 |
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2.33% Huntington Bancshares Incorporated senior notes due 2022 |
946 |
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|
953 |
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4.00% Huntington Bancshares Incorporated senior notes due 2025 |
507 |
|
|
— |
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2.64% Huntington Bancshares Incorporated senior notes due 2018 |
— |
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|
399 |
|
Subordinated Notes: |
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7.00% Huntington Bancshares Incorporated subordinated notes due 2020 |
305 |
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|
312 |
|
3.55% Huntington Bancshares Incorporated subordinated notes due 2023 |
239 |
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|
245 |
|
Sky Financial Capital Trust IV 4.20% junior subordinated debentures due 2036 (1) |
74 |
|
|
74 |
|
Sky Financial Capital Trust III 4.20% junior subordinated debentures due 2036 (1) |
72 |
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|
72 |
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Huntington Capital I Trust Preferred 3.50% junior subordinated debentures due 2027 (2) |
69 |
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|
69 |
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Huntington Capital II Trust Preferred 3.42% junior subordinated debentures due 2028 (3) |
31 |
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|
31 |
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Camco Financial Statutory Trust I 4.13% due 2037 (4) |
4 |
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|
4 |
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Total notes issued by the parent |
3,216 |
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|
3,128 |
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The Bank: |
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Senior Notes: |
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3.55% Huntington National Bank senior notes due 2023 |
756 |
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|
— |
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3.25% Huntington National Bank senior notes due 2021 |
750 |
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|
— |
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2.47% Huntington National Bank senior notes due 2020 |
692 |
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|
694 |
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2.55% Huntington National Bank senior notes due 2022 |
672 |
|
|
685 |
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2.23% Huntington National Bank senior notes due 2019 |
498 |
|
|
497 |
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2.43% Huntington National Bank senior notes due 2020 |
493 |
|
|
498 |
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2.97% Huntington National Bank senior notes due 2020 |
491 |
|
|
492 |
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3.31% Huntington National Bank senior notes due 2020 (5) |
300 |
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|
300 |
|
2.24% Huntington National Bank senior notes due 2018 |
— |
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|
844 |
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2.10% Huntington National Bank senior notes due 2018 |
— |
|
|
748 |
|
1.75% Huntington National Bank senior notes due 2018 |
— |
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|
496 |
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5.04% Huntington National Bank medium-term notes due 2018 |
— |
|
|
35 |
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Subordinated Notes: |
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3.86% Huntington National Bank subordinated notes due 2026 |
229 |
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|
238 |
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5.45% Huntington National Bank subordinated notes due 2019 |
76 |
|
|
77 |
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6.67% Huntington National Bank subordinated notes due 2018 |
— |
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|
129 |
|
Total notes issued by the bank |
4,957 |
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|
5,733 |
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FHLB Advances: |
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3.12% weighted average rate, varying maturities greater than one year |
6 |
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|
7 |
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Other: |
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Huntington Technology Finance nonrecourse debt, 4.19% effective interest rate, varying maturities |
322 |
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|
263 |
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4.68% Huntington Preferred Capital II - Class F securities (6) |
74 |
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|
75 |
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4.68% Huntington Preferred Capital II - Class G securities (6) |
50 |
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|
— |
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Total other |
446 |
|
|
338 |
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Total long-term debt |
$ |
8,625 |
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$ |
9,206 |
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(1) |
Variable effective rate at December 31, 2018, based on three-month LIBOR +1.40%.
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(2) |
Variable effective rate at December 31, 2018, based on three-month LIBOR +0.70%
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(3) |
Variable effective rate at December 31, 2018, based on three-month LIBOR +0.625%.
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(4) |
Variable effective rate at December 31, 2018, based on three-month LIBOR +1.33%.
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(5) |
Variable effective rate at December 31, 2018, based on three-month LIBOR + 0.51%
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(6) |
Variable effective rate at December 31, 2018, based on three-month LIBOR +1.88%.
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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 interest rate risk of certain fixed-rate debt by converting the debt to a variable rate. See Note 18 for more information regarding such financial instruments.
In May 2018, Huntington issued $500 million of senior notes at 99.686% of face value. The senior notes mature on May 15, 2025 and have a fixed coupon rate of 4.00%.
In May 2018, the Bank issued $750 million of senior notes at 99.774% of face value. The senior notes mature on May 14, 2021 and have a fixed coupon rate of 3.25%.
In August 2018, the Bank issued $750 million of senior notes at 99.780% of face value. The senior notes mature on October 6, 2023 and have a fixed coupon rate of 3.55%.
In March 2017, the Bank issued $700 million 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 $300 million of senior notes at 100% of face value.
In August 2017, the Bank issued $700 million 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%.
Long-term debt maturities for the next five years and thereafter are as follows:
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(dollar amounts in millions) |
2019 |
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2020 |
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2021 |
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2022 |
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2023 |
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Thereafter |
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Total |
The Parent Company: |
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Senior notes |
$ |
— |
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|
$ |
— |
|
|
$ |
1,000 |
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|
$ |
1,000 |
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|
$ |
— |
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|
$ |
500 |
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|
$ |
2,500 |
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Subordinated notes |
— |
|
|
300 |
|
|
— |
|
|
— |
|
|
250 |
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|
253 |
|
|
803 |
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The Bank: |
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Senior notes |
500 |
|
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2,000 |
|
|
750 |
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|
700 |
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|
750 |
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|
— |
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|
4,700 |
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Subordinated notes |
76 |
|
|
— |
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|
— |
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|
— |
|
|
— |
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|
250 |
|
|
326 |
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FHLB Advances |
1 |
|
|
2 |
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|
— |
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|
1 |
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|
1 |
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|
1 |
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|
6 |
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Other |
16 |
|
|
74 |
|
|
85 |
|
|
163 |
|
|
108 |
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|
— |
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|
446 |
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Total |
$ |
593 |
|
|
$ |
2,376 |
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|
$ |
1,835 |
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|
$ |
1,864 |
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$ |
1,109 |
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$ |
1,004 |
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$ |
8,781 |
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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, 2018, Huntington was in compliance with all such covenants.