HUNTINGTON BANCSHARES INC /MD/HBAN
HUNTINGTON BANCSHARES INC /MD/ Debt Disclosure
LONG-TERM DEBT
Huntington’s long-term debt consisted of the following:
At December 31, | |||||||
(dollar amounts in thousands) | 2016 | 2015 | |||||
The Parent Company: | |||||||
Senior Notes: | |||||||
3.19% Huntington Bancshares Incorporated medium-term notes due 2021 | $ | 972,625 | $ | — | |||
2.33% Huntington Bancshares Incorporated senior note due 2022 | 953,674 | — | |||||
2.64% Huntington Bancshares Incorporated senior note due 2018 | 399,278 | 399,169 | |||||
Subordinated Notes: | |||||||
7.00% Huntington Bancshares Incorporated subordinated notes due 2020 | 319,857 | 326,379 | |||||
3.55% Huntington Bancshares Incorporated subordinated notes due 2023 | 248,156 | — | |||||
Sky Financial Capital Trust IV 2.40% junior subordinated debentures due 2036 (1) | 74,320 | 74,320 | |||||
Sky Financial Capital Trust III 2.40% junior subordinated debentures due 2036 (1) | 72,165 | 72,165 | |||||
Huntington Capital I Trust Preferred 1.70% junior subordinated debentures due 2027 (2) | 68,720 | 110,706 | |||||
Huntington Capital II Trust Preferred 1.06% junior subordinated debentures due 2028 (3) | 31,576 | 54,030 | |||||
Camco Statutory Trust I 2.30% due 2037 (4) | 4,244 | 4,212 | |||||
Total notes issued by the parent | 3,144,615 | 1,040,981 | |||||
The Bank: | |||||||
Senior Notes: | |||||||
2.24% Huntington National Bank senior notes due 2018 | 843,568 | 841,313 | |||||
2.10% Huntington National Bank senior notes due 2018 | 747,170 | 745,894 | |||||
1.75% Huntington National Bank senior notes due 2018 | 499,732 | 501,006 | |||||
1.43% Huntington National Bank senior note due 2019 | 499,686 | 498,678 | |||||
2.23% Huntington National Bank senior note due 2017 | 499,445 | 500,416 | |||||
2.43% Huntington National Bank senior notes due 2020 | 498,448 | 498,185 | |||||
2.97% Huntington National Bank senior notes due 2020 | 495,088 | 495,998 | |||||
1.42% Huntington National Bank senior notes due 2017 (5) | 250,000 | 250,000 | |||||
5.04% Huntington National Bank medium-term notes due 2018 | 36,351 | 37,469 | |||||
1.31% Huntington National Bank senior note due 2016 | — | 498,360 | |||||
1.40% Huntington National Bank senior note due 2016 | — | 349,399 | |||||
Subordinated Notes: | |||||||
3.86% Huntington National Bank subordinated notes due 2026 | 239,293 | — | |||||
6.67% Huntington National Bank subordinated notes due 2018 | 131,910 | 136,227 | |||||
5.45% Huntington National Bank subordinated notes due 2019 | 81,155 | 83,833 | |||||
5.59% Huntington National Bank subordinated notes due 2016 | — | 103,357 | |||||
Total notes issued by the bank | 4,821,846 | 5,540,135 | |||||
FHLB Advances: | |||||||
3.47% weighted average rate, varying maturities greater than one year | 7,540 | 7,800 | |||||
Other: | |||||||
Huntington Technology Finance nonrecourse debt, 3.43% effective interest rate, varying maturities | 277,523 | 301,577 | |||||
Huntington Technology Finance ABS Trust 2014 1.70% due 2020 | 57,494 | 123,577 | |||||
Huntington Technology Finance ABS Trust 2012 1.79% due 2017 | — | 27,153 | |||||
Other | 141 | 141 | |||||
Total other | 335,158 | 452,448 | |||||
Total long-term debt | $ | 8,309,159 | $ | 7,041,364 | |||
(1) | Variable effective rate at December 31, 2016, based on three-month LIBOR +1.400% |
(2) | Variable effective rate at December 31, 2016, based on three-month LIBOR +0.70% |
(3) | Variable effective rate at December 31, 2016, based on three-month LIBOR +0.625% |
(4) | Variable effective rate at December 31, 2016, based on three-month LIBOR +1.33%. |
(5) | Variable effective rate at December 31, 2016, based on three-month LIBOR +0.425%. |
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 August 2016, Parent Company and Bank subordinated debt with a fair value totaling $520 million was acquired by Huntington as part of the FirstMerit acquisition. See Note 3 Acquisition of FirstMerit Corporation for additional information on the method used to determine fair value.
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%. At December 31, 2016, debt issuance costs of $5 million related to the note are reported on the balance sheet as a direct deduction from the face amount of the note.
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%. At December 31, 2016, debt issuance costs of $5 million related to the note are reported on the balance sheet as a direct deduction from the face amount of the note.
In November 2015, the Bank issued $850 million of senior notes at 99.88% of face value. The senior bank note issuances mature on November 6, 2018 and have a fixed coupon rate of 2.20%. The senior notes may be redeemed one month prior to maturity date at 100% of principal plus accrued and unpaid interest.
In August 2015, the Bank issued $500 million of senior notes at 99.58% of face value. The senior bank note issuances mature on August 20, 2020 and have a fixed coupon rate of 2.88%.
In June 2015, the Bank issued $750 million of senior notes at 99.71% of face value. The senior bank note issuances mature on June 30, 2018 and have a fixed coupon rate of 2.00%.
On March 31, 2015, Huntington completed its acquisition of Huntington Technology Finance. As part of the acquisition, Huntington assumed $293 million of non-recourse debt with various financial institutions and maturity dates. The effective interest rate on the non-recourse debt is 3.20%. Huntington also assumed $255 million of debt associated with two securitizations. The securitization debt has various classes and associated maturity dates and has an effective interest rate of 1.70%.
In February 2015, the Bank issued $500 million of senior notes at 99.86% of face value. The senior bank note issuances mature on February 26, 2018 and have a fixed coupon rate of 1.70%. Also, in February 2015, the Bank issued $500 million of senior notes at 99.87% of face value. The senior bank note issuances mature on April 1, 2020 and have a fixed coupon rate of 2.40%. Both senior note issuances may be redeemed one month prior to the maturity date at 100% of principal plus accrued and unpaid interest.
Long-term debt maturities for the next five years and thereafter are as follows:
(dollar amounts in thousands) | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | ||||||||||||||||||||
The Parent Company: | |||||||||||||||||||||||||||
Senior notes | $ | — | $ | 400,000 | $ | — | $ | — | $ | 1,000,000 | $ | 1,000,000 | $ | 2,400,000 | |||||||||||||
Subordinated notes | — | — | — | 300,000 | — | 503,463 | 803,463 | ||||||||||||||||||||
The Bank: | |||||||||||||||||||||||||||
Senior notes | 750,000 | 2,135,000 | 500,000 | 1,000,000 | — | — | 4,385,000 | ||||||||||||||||||||
Subordinated notes | — | 125,539 | 75,716 | — | — | 250,000 | 451,255 | ||||||||||||||||||||
FHLB Advances | 100 | 1,115 | 325 | 2,368 | — | 3,769 | 7,677 | ||||||||||||||||||||
Other | 64,288 | 84,357 | 62,048 | 81,551 | 42,187 | 726 | 335,157 | ||||||||||||||||||||
Total | $ | 814,388 | $ | 2,746,011 | $ | 638,089 | $ | 1,383,919 | $ | 1,042,187 | $ | 1,757,958 | $ | 8,382,552 | |||||||||||||
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, 2016, Huntington was in compliance with all such covenants.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2016 | Feb 22, 2017 | Showing above |
| 2015 | Feb 17, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.