Floating Rate Capital Debt

12 Months Ended

Dec. 31, 2021

In January 1997, the Corporation issued $150 million of Floating Rate Capital Securities, Series A, through a statutory business trust wholly owned by the Corporation (NTC Capital I) due in January 2027. In April 1997, the Corporation also issued, through a separate wholly owned statutory business trust (NTC Capital II), $120 million of Floating Rate Capital Securities, Series B due in April 2027. The sole assets of the trusts were subordinated debentures of the Corporation that had the same interest rates and maturity dates as the corresponding distribution rates and redemption dates of the Floating Rate Capital Securities. The Series A securities were issued at a discount to yield 60.5 basis points above the three-month LIBOR and the Series B securities were issued at a discount to yield 67.9 basis points above the three-month LIBOR. The holders of the Series A and B securities were entitled to receive preferential cumulative cash distributions quarterly in arrears (based on the liquidation amount of $1,000 per security) at an interest rate equal to three-month LIBOR plus 52.0 basis points and 59.0 basis points, respectively.

On October 15, 2021, the Floating Rate Capital Securities Series A and Series B were redeemed at the principal amount plus accrued and unpaid interest and, concurrently with the redemption of the Floating Rate Capital Securities Series A and B, the corresponding subordinated debentures were fully redeemed for $278.8 million principal amount plus accrued and unpaid interest, with $154.9 million attributable to the Series A subordinated debentures and $123.9 million attributable to the Series B subordinated debentures.

The following table summarizes the book values of the outstanding subordinated debentures as of December 31, 2021 and 2020.

TABLE 91: SUBORDINATED DEBENTURES


	DECEMBER 31,
(In Millions)	2021		2020
NTC Capital I Subordinated Debentures	$	—	$	154.3
NTC Capital II Subordinated Debentures	—		123.5
Total Subordinated Debentures	$	—	$	277.8