Long-Term Debt

Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt:



(Dollars in millions)	December 31, 2015		December 31, 2014
Debt issued by MUAH
Senior debt:
Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 0.91% at December 31, 2015	$	250	$	—
Fixed rate 1.625% notes due February 2018	450		—
Fixed rate 2.25% notes due February 2020	1,000		—
Fixed rate 3.50% notes due June 2022	398		398
Fixed rate 3.00% notes due February 2025	498		—
Subordinated debt due to BTMU:
Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 1.98% at December 31, 2015 and 1.63% at December 31, 2014	300		300
Junior subordinated debt payable to trusts⁽¹⁾:
Floating rate notes due September 2036. These notes bear a combined weighted-average rate of 2.21% at December 31, 2015 and 2.35% at December 31, 2014	36		52
Total debt issued by MUAH	2,932		750
Debt issued by MUB and other subsidiaries
Senior debt:
Fixed rate FHLB of San Francisco advances due February 2016. These notes bear a combined weighted-average rate of 2.50% at December 31, 2015 and 2.56% at December 31, 2014	500		800
Fixed rate 3.00% notes due June 2016	700		700
Fixed rate 1.50% notes due September 2016	499		499
Floating rate notes due September 2016. These notes, which bear interest at 0.75% above 3-month LIBOR, had a rate of 1.35% at December 31, 2015 and 1.00% at December 31, 2014	500		500
Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 0.73% at December 31, 2015 and 0.63% at December 31, 2014	250		250
Fixed rate 2.125% notes due June 2017	499		499
Fixed rate 2.625% notes due September 2018	1,000		1,000
Fixed rate 2.250% notes due May 2019	502		499
Senior debt due to BTMU:
Floating rate debt due January 2018. These notes, which bear interest at 0.85% above 1-month LIBOR, had a rate of 1.09% at December 31, 2015	1,000		—
Floating rate debt notes due January 2018. These notes, which bear interest at 0.87% above 1-month LIBOR, had a rate of 1.11% at December 31, 2015	1,500		—
Floating rate debt notes due January 2018. These notes, which bear interest at 1.03% above 1-month LIBOR, had a rate of 1.27% at December 31, 2015	1,000		—
Subordinated debt:
Fixed rate 5.95% notes due May 2016	703		711
Subordinated debt due to BTMU:
Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 1.80% at December 31, 2015 and 1.45% at December 31, 2014	750		750
Capital lease obligations with a combined weighted-average interest rate of 4.92% at December 31, 2015 and December 31, 2014 ⁽¹⁾	14		14
Total debt issued by MUB and other subsidiaries	9,417		6,222
Total long-term debt	$	12,349	$	6,972


(1)	Long-term debt assumed through acquisitions.

Senior Debt

Certain of the debt issuances are repayable prior to maturity at the Company’s option at a redemption price equal to 100% of par plus accrued interest.

MUAH senior debt is issued under MUAH’s shelf registration statement with the SEC. In January 2015, MUAH filed a new shelf registration statement authorizing issuance of a total of $3.6 billion of debt and other securities, effectively terminating the prior shelf registration statement. In February 2015, MUAH issued an aggregate of $2.2 billion of senior notes from the new shelf registration statement. As of December 31, 2015, $1.4 billion of debt or other securities were available for issuance.

Bank senior debt is issued as part of the Bank’s $8.0 billion bank note program under which the Bank may issue, from time to time, senior unsecured debt obligations with maturities of more than one year from their respective dates of issue and subordinated debt obligations with maturities of five years or more from their respective dates of issue. At December 31, 2015 there is $1.9 billion available for issuance under the program. In January 2016, the bank note program was increased to $12.0 billion.

Senior Debt due to BTMU

Senior debt due to BTMU is an unsecured obligation of the Bank. The Bank may prepay the senior debt prior to the stated maturity date in whole or in part and in an amount of not less than $500,000 dollars. In the case of an event of default in respect to the BTMU Loan (which events are limited to certain bankruptcy or insolvency related events), BTMU may accelerate the payment of the BTMU Loan.

FHLB Senior Debt

The Bank borrows periodically from the FHLB on a medium-term basis. The advances are secured by certain of the Bank's assets and bear either a fixed or a floating interest rate. The floating rates are tied to the three-month LIBOR plus a spread, reset every 90 days. As of December 31, 2015 and 2014, the Bank had pledged loans and securities of $57.1 billion and $54.7 billion, respectively, as collateral for short-term and medium-term advances from the Federal Reserve Bank and FHLB.

Junior Subordinated Debt Payable to Trusts

The junior subordinated debt payable to trusts was assumed from our PCBC acquisition. These trusts were formed for the sole purpose of issuing preferred securities to third party investors. The proceeds from issuing the preferred securities were used by the trusts to purchase junior subordinated debt issued by PCBC prior to the acquisition. The junior subordinated debt qualifies as Tier 1 risk-based capital under Federal Reserve guidelines.

Subordinated Debt due to BTMU

The terms and conditions of the subordinated debt due to BTMU are equivalent to those which would apply in a similar transaction with a non-related party. The Bank may prepay the subordinated debt prior to the stated maturity in whole or in part on or after June 28, 2018, but only if the Bank obtains prior written approval of the OCC. MUAH may prepay the subordinated debt prior to the stated maturity date in whole or in part on or after December 27, 2018, but only if the Company obtains the prior written approval of the Federal Reserve. The subordinated debt due to BTMU is a junior obligation to MUAH’s and to the Bank's existing and future outstanding senior indebtedness, and qualifies as Tier 2 capital under the federal banking agency risk-based capital guidelines.