Other Borrowings and Corporate Debt

12 Months Ended

Dec. 31, 2019

NOTE 13—OTHER BORROWINGS AND CORPORATE DEBT

Other Borrowings

The following table presents the Company's external lines of credit at December 31, 2019 (dollars in millions):



Description	Maturity Date	Borrower	Outstanding		Available
Senior unsecured, committed revolving credit facility⁽¹⁾	June 2024	ETFC	$	—	$	300
FHLB secured credit facility	Determined at trade	ETB	$	—	$	6,837
Federal Reserve Bank discount window	Overnight	ETB	$	—	$	1,336
Senior unsecured, committed revolving credit facility⁽²⁾	June 2020	ETS	$	—	$	600
Secured, committed lines of credit	June 2020	ETS	$	—	$	175
Unsecured, uncommitted lines of credit	June 2020	ETS	$	—	$	50
Unsecured, uncommitted lines of credit	None	ETS	$	—	$	75
Secured, uncommitted lines of credit	None	ETS	$	—	$	425

(1)

On June 21, 2019, the Company entered into a new five year, $300 million senior unsecured committed revolving credit facility, which replaced its three year senior unsecured committed revolving credit facility entered into on June 23, 2017. The senior unsecured committed revolving credit facility contains certain covenants, including maintenance covenants related to the Company's interest coverage, leverage and regulatory net capital ratios with which the Company was in compliance at December 31, 2019.

(2)

On June 21, 2019, E*TRADE Securities entered into a 364-day, $600 million senior unsecured committed revolving credit facility, which replaced its 364-day senior unsecured committed revolving credit facility entered into on June 22, 2018. The senior unsecured committed revolving credit facility contains certain covenants, including maintenance covenants related to E*TRADE Securities' minimum consolidated tangible net worth and regulatory net capital ratio with which the Company was in compliance at December 31, 2019.

Corporate Debt

The following tables present the significant components of E*TRADE Financial's corporate debt (dollars in millions):



	Face Value		Discount			Net
December 31, 2019:
Interest-bearing notes:
2.95% Senior Notes, due 2022	$	600	$	(3	)	$	597
3.80% Senior Notes, due 2027	400		(3		)	397
4.50% Senior Notes, due 2028	420		(4		)	416
Total corporate debt	$	1,420	$	(10	)	$	1,410



December 31, 2018:
Interest-bearing notes:
2.95% Senior Notes, due 2022	$	600	$	(4	)	$	596
3.80% Senior Notes, due 2027	400		(3		)	397
4.50% Senior Notes, due 2028	420		(4		)	416
Total corporate debt	$	1,420	$	(11	)	$	1,409

Issuance of Corporate Debt

2018 Issuances

During the year ended December 31, 2018, the Company issued $420 million in aggregate principal amount of Senior Notes due 2028. The Senior Notes bear interest at an annual rate of 4.50% and will mature on June 20, 2028. The Senior Notes are our general unsecured senior obligations and rank equally in right of payment with all of our existing and future unsubordinated indebtedness. The Senior Notes effectively rank junior to our secured indebtedness, if any, to the extent of the collateral securing such indebtedness, and are structurally subordinated to all liabilities of our subsidiaries. The Senior Notes are not guaranteed by the subsidiaries.

Net proceeds from the issuance of $420 million Senior Notes were used to redeem all outstanding TRUPs during the year ended December 21, 2018. In connection with the redemption, the Company recognized a loss on early extinguishment of debt of $4 million, consisting of the difference between the carrying value of the TRUPs redeemed, including unamortized debt issuance costs, and the total cash amount paid, including related fees and expenses.

Ranking of Debt Seniority

All of the Company’s notes rank equal in right of payment with all of the Company’s existing and future unsubordinated indebtedness and rank senior in right of payment to all its existing and future subordinated indebtedness. However, the notes rank effectively junior to the Company's secured indebtedness to the extent of the collateral securing such indebtedness.