WBS » Topics » NOTE 10: Long-Term Debt

This excerpt taken from the WBS 10-Q filed May 8, 2009.

NOTE 10: Long-Term Debt


(In thousands)

   March 31,
    December 31,

Subordinated notes (due January 2013)

   $ 177,480     $ 200,000  

Senior notes (due April 2014)

     150,000       150,000  

Junior subordinated debt to related capital trusts (due 2027-2037):


Webster Capital Trust IV

     200,010       200,010  

Webster Statutory Trust I

     77,320       77,320  

People’s Bancshares Capital Trust II

     10,309       10,309  

Eastern Wisconsin Bancshares Capital Trust II

     2,070       2,070  

NewMil Statutory Trust I

     10,310       10,310  
     627,499       650,019  

Unamortized premiums, net

     (281 )     (399 )

Hedge accounting adjustments

     34,750       38,177  

Total long-term debt

   $ 661,968     $ 687,797  

On March 10, 2009, the Company announced the commencement of a fixed price cash tender offer, which expired on March 18, 2009, for any and all of Webster Bank’s outstanding 5.875% Subordinated Notes due in 2013. The consideration paid per $1,000 of principal was $800 plus all accrued and unpaid interest. Holders tendered $22.5 million of the outstanding principal of the subordinated debt for a total payment of $18.3 million including $0.2 million of accrued interest, resulting in a $4.3 million gain. In connection with the tender offer, the Company terminated $25 million of the fair value hedge associated with the subordinated notes. The termination of that portion of the swap resulted in a net gain of $1.9 million. The pro-rata share of the gain not directly related to the debt redemption was $188,480 which was deferred and is being amortized over the remaining life of the subordinated notes. A total gain of $6.0 million was recognized in the accompanying Consolidated Statement of Operations for the three months ended March 31, 2009.



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