Long-Term Debt

6 Months Ended

Jun. 30, 2011

Long-Term Debt

Long-Term Debt

3. Long-Term Debt

Long-term debt consisted of the following:

	June 30, 2011		December 31, 2011
Subordinated notes payable	$	150,000	$	—
Term note payable		140,000
Subordinated debentures		16,812		—
Other long-term debt		53,290		376
Total long-term debt	$	360,102	$	376

As part of the merger, the Company assumed Whitney National Bank's $150 million par value subordinated notes which carry an interest rate of 5.875% and mature April 1, 2017. These notes qualify as capital for the calculation of the regulatory ratio of total capital to risk-weighted assets, subject to certain limitations as they approach maturity.

During the second quarter, the Company entered into a $140 million par value term loan facility and borrowed the full amount which matures on June 3, 2013. The variable interest rate is LIBOR plus 2.00% per annum. The note is pre-payable at any time and the Company is subject to covenants customary in financings of this nature and are not expected to impact the operations of the Company. The Company must maintain the following financial covenants: maximum ratio of consolidated non-performing assets to consolidated total loans and OREO excluding covered loans of 4.0% through June 2012 and 3.5% thereafter; consolidated net worth of $2.1 billion which will increase each subsequent quarter by 50% of consolidated net income but will not decrease for any losses and will increase by 100% for issuance of common stock. The Company must maintain Tier 1 leverage ratio of greater than or equal to 7%; Tier 1 risk based capital ratio of greater than or equal to 9.5%; and total risk based capital ratio of greater than or equal to 11.5%. The Company was in compliance with the covenants as of June 30, 2011.

In the merger with Whitney, the Company also assumed obligations under subordinated debentures payable to unconsolidated trusts that issued trust preferred securities. The weighted-average yield was approximately 4% at June 30, 2011, and December 31, 2010. The debentures have maturities from 2031 through 2034, but they are currently callable with prior regulatory approval. Subject to certain adjustments, these debentures currently qualify as capital for the calculation of regulatory capital ratios. The Company has received regulatory approval to redeem these securities and expects to redeem them at the next redemption period.

Substantially all of the other long-term debt consists of borrowings associated with tax credit fund activities. These borrowings mature at various dates beginning in 2015 through 2017.