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Trust Preferred Securities Issued by Unconsolidated Subsidiaries (Tables)
 12 Months Ended
Dec. 31, 2012
Summary of Trust Preferred Securities, Common Stock and Related Debentures

The trust preferred securities, common stock and related debentures are summarized as follows:

 

dollars in millions

 

   

Trust Preferred            
Securities,             

Net of Discount        (a)

 

     

Common        
    Stock        

 

     

Principal        

Amount of        
Debentures,        
Net of Discount     (b)

 

     

Interest Rate        

of Trust Preferred        
Securities and        
Debentures     (c)

 

    

Maturity of
Trust Preferred
Securities and
Debentures

 

  

December 31, 2012

              

KeyCorp Capital I

    $ 156      $ 6      $ 162        1.100  %      2028  

KeyCorp Capital II

      113        4        117        6.875         2029  

KeyCorp Capital III

      148        4        152        7.750         2029  

Total

    $ 417      $ 14      $ 431        5.025  %      —    
  

 

 

     

 

 

     

 

 

       
                                             

December 31, 2011

    $ 1,206      $ 19      $ 1,225        6.610  %      —    
  

 

 

     

 

 

     

 

 

       
                                             

 

(a) The trust preferred securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of trust preferred securities carries an interest rate identical to that of the related debenture. Certain trust preferred securities include basis adjustments related to fair value hedges totaling $77 million at December 31, 2012, and $160 million at December 31, 2011. See Note 8 (“Derivatives and Hedging Activities”) for an explanation of fair value hedges.

 

(b) We have the right to redeem these debentures: If the debentures purchased by KeyCorp Capital I are redeemed before they mature, the redemption price will be the principal amount, plus any accrued but unpaid interest. If the debentures purchased by KeyCorp Capital II or KeyCorp Capital III are redeemed before they mature, the redemption price will be the greater of: (a) the principal amount, plus any accrued but unpaid interest or (b) the sum of the present values of principal and interest payments discounted at the Treasury Rate (as defined in the applicable indenture), plus 20 basis points (25 basis points or 50 basis points in the case of redemption upon either a tax event or a capital treatment event for KeyCorp Capital III), plus any accrued but unpaid interest. When debentures are redeemed in response to tax or capital treatment events, the redemption price for KeyCorp Capital II and KeyCorp Capital III generally is slightly more favorable to us. The principal amount of certain debentures includes basis adjustments related to fair value hedges totaling $77 million at December 31, 2012, and $160 million at December 31, 2011. See Note 8 for an explanation of fair value hedges. The principal amount of debentures, net of discount is included in Long-Term Debt on the balance sheet. See Note 15 (“Long-Term Debt’).

 

(c) The interest rates for the trust preferred securities issued by KeyCorp Capital II and KeyCorp Capital III are fixed. KeyCorp Capital I has a floating interest rate equal to three-month LIBOR plus 74 basis points that reprices quarterly. The total interest rates are weighted-average rates.