Annual report pursuant to Section 13 and 15(d)

Other Long Term Debt

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Other Long Term Debt
 12 Months Ended
Dec. 31, 2011
Long-term Debt, Current and Noncurrent [Abstract]  
Long-term Debt [Text Block]

11. Other Long-Term Debt

 

Huntington's other long-term debt consisted of the following:

      At December 31,
(dollar amounts in thousands)   2011     2010
1.28% The Huntington National Bank medium-term notes due through 2018 (1) $ 641,443   $ 638,950
0.93% Securitization trust notes payable due through 2018 (2)   333,644     877,270
5.54% Securitization trust note payable due 2014 (3)   123,039     356,089
5.64% Securitization trust note payable due 2013 (4)   18,230     151,937
2.60% Class B preferred securities of subsidiary, no maturity (5)   65,000     65,000
7.88% Class C preferred securities of subsidiary, no maturity   50,000     50,000
Other   161     4,846
Total other long-term debt $ 1,231,517   $ 2,144,092
             
(1) Bank notes had fixed rates and variable rates with a weighted-average interest rate of 1.28% at December 31, 2011.
(2) Variable effective rate at December 31, 2011, based on one month LIBOR + 0.67 or 0.93%.
(3) Combination of fixed rates with a weighted average rate at December 31, 2011 of 5.54%.
(4) Combination of fixed and variable rates with a weighted average interest rate of 5.64% at December 31, 2011.
(5) Variable effective rate at December 31, 2011, based on one month LIBOR + 2.35 or 2.60%.

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 20 for more information regarding such financial instruments.

 

In 2010, approximately $92.1 million of municipal securities, $86.0 million in Huntington Preferred Capital, Inc. (Real Estate Investment Trust) Class E Preferred Stock and cash of $6.1 million were transferred to Tower Hill Securities, Inc., an unconsolidated entity, in exchange for $184.1 million of Common and Preferred Stock of Tower Hill Securities, Inc. The municipal securities and the REIT Shares will be used to satisfy $65.0 million of mandatorily redeemable securities issued by Tower Hill Securities, Inc. and are not available to satisfy the general debts and obligations of Huntington or any consolidated affiliates. The transfer did not meet the sale requirement of ASC 860 and therefore has been reflected as a secured financing on the Consolidated Balance Sheet of Huntington.

 

Other long-term debt maturities for the next five years and thereafter are as follows:

 

      Other long-term
  (dollar amounts in thousands) debt maturities
  2012   $ 600,161  
  2013     30,869  
  2014     108,377  
  2015     ---  
  2016     ---  
  and thereafter     483,644  

These maturities are based upon the par values of the long-term debt.

 

The terms of the other 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, 2011, Huntington was in compliance with all such covenants.