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Junior Subordinated Debt Securities
 12 Months Ended
Dec. 31, 2016
Junior Subordinated Notes [Abstract]  
Junior Subordinated Debt Securities
14. Junior Subordinated Debt Securities
Outstanding Junior Subordinated Debt Securities
Outstanding junior subordinated debt securities and exchangeable surplus trust securities which are exchangeable for junior subordinated debt securities prior to redemption or repayment, were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
 
 
 
 
 
 
 
 
 
 
 
 
2016
 
2015
Issuer
 
Issue
Date
 
Interest
Rate (1)
 
Scheduled
Redemption
Date
 
Interest Rate
Subsequent to
Scheduled
Redemption
Date (2)
 
Final
Maturity
 
Face
Value
 
Unamortized
Discount
 
Unamortized
Issuance
Costs
 
Carrying
Value
 
Face
Value
 
Unamortized
Discount
 
Unamortized
Issuance
Costs
 
Carrying
Value (3)
 
 
 
 
 
 
 
 
 
 
 
 
(In millions)
MetLife, Inc.
 
July 2009
 
10.750%
 
August 2039
 
LIBOR + 7.548%
 
August 2069
 
$
500

 
$
—

 
$
(4
)
 
$
496

 
$
500

 
$
—

 
$
(4
)
 
$
496

MetLife Capital Trust X (4), (5)
 
April 2008
 
9.250%
 
April 2038
 
LIBOR + 5.540%
 
April 2068
 
750

 
—

 
(6
)
 
744

 
750

 
—

 
(6
)
 
744

MetLife Capital Trust IV (4)
 
December 2007
 
7.875%
 
December 2037
 
LIBOR + 3.960%
 
December 2067
 
700

 
(4
)
 
(6
)
 
690

 
700

 
(4
)
 
(7
)
 
689

MetLife, Inc.
 
December 2006
 
6.400%
 
December 2036
 
LIBOR + 2.205%
 
December 2066
 
1,250

 
(2
)
 
(9
)
 
1,239

 
1,250

 
(2
)
 
(9
)
 
1,239

 
 
 
 
 
 
 
 
 
 
 
 
$
3,200

 
$
(6
)
 
$
(25
)
 
$
3,169

 
$
3,200

 
$
(6
)
 
$
(26
)
 
$
3,168

_________________
(1)
Prior to the scheduled redemption date, interest is payable semiannually in arrears.
(2)
In the event the securities are not redeemed on or before the scheduled redemption date, interest will accrue after such date at an annual rate of three-month LIBOR plus the indicated margin, payable quarterly in arrears.
(3)
Net of $26 million of unamortized issuance costs, which were reported in other assets at December 31, 2015.
(4)
MetLife Capital Trust X and MetLife Capital Trust IV are VIEs which are consolidated on the financial statements of the Company. The securities issued by these entities are exchangeable surplus trust securities, which are exchangeable for a like amount of MetLife, Inc.’s junior subordinated debt securities on the scheduled redemption date; mandatorily under certain circumstances, and at any time upon MetLife, Inc. exercising its option to redeem the securities.
(5)
See Note 23 for the information regarding the Junior Subordinated Debt Securities exchange transaction in February 2017.
In connection with each of the securities described above, MetLife, Inc. may redeem or may cause the redemption of the securities (i) in whole or in part, at any time on or after the date five years prior to the scheduled redemption date at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption, or (ii) in certain circumstances, in whole or in part, prior to the date five years prior to the scheduled redemption date at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption or, if greater, a make-whole price. MetLife, Inc. also has the right to, and in certain circumstances the requirement to, defer interest payments on the securities for a period up to 10 years. Interest compounds during such periods of deferral. If interest is deferred for more than five consecutive years, MetLife, Inc. is required to use proceeds from the sale of its common stock or warrants on common stock to satisfy this interest payment obligation. In connection with each of the securities described above, MetLife, Inc. entered into a separate replacement capital covenant (“RCC”). As part of each RCC, MetLife, Inc. agreed that it will not repay, redeem, or purchase the securities on or before a date 10 years prior to the final maturity date of each issuance, unless, subject to certain limitations, it has received cash proceeds during a specified period from the sale of specified replacement securities. Each RCC will terminate upon the occurrence of certain events, including an acceleration of the applicable securities due to the occurrence of an event of default. The RCCs are not intended for the benefit of holders of the securities and may not be enforced by them. Rather, each RCC is for the benefit of the holders of a designated series of MetLife, Inc.’s other indebtedness (the “Covered Debt”). Initially, the Covered Debt for each of the securities described above was MetLife, Inc.’s 5.700% senior notes due 2035 (the “5.700% Senior Notes”). As a result of the issuance of MetLife, Inc.’s 10.750% Fixed-to-Floating Rate Junior Subordinated Debentures due 2069 (the “10.750% JSDs”), the 10.750% JSDs became the Covered Debt with respect to, and in accordance with, the terms of the RCC relating to MetLife, Inc.’s 6.40% Fixed-to-Floating Rate Junior Subordinated Debentures due 2066. The 5.700% Senior Notes continue to be the Covered Debt with respect to, and in accordance with, the terms of the RCCs relating to each of MetLife Capital Trust IV’s 7.875% Fixed-to-Floating Rate Exchangeable Surplus Trust Securities, MetLife Capital Trust X’s 9.250% Fixed-to-Floating Rate Exchangeable Surplus Trust Securities and the 10.750% JSDs. MetLife, Inc. also entered into a replacement capital obligation which will commence during the six month period prior to the scheduled redemption date of each of the securities described above and under which MetLife, Inc. must use reasonable commercial efforts to raise replacement capital to permit repayment of the securities through the issuance of certain qualifying capital securities.
Interest expense on outstanding junior subordinated debt securities was $258 million for each of the years ended December 31, 2016, 2015 and 2014, which is included in other expenses.