Long-Term Debt

Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt.



(Dollars in millions)	December 31, 2019		December 31, 2018
Debt issued by MUAH
Senior debt:
Fixed rate 3.50% notes due June 2022	$	399	$	398
Fixed rate 3.00% notes due February 2025	397		397
Senior debt due to MUFG Bank, Ltd:
Floating rate debt due December 2021. This note, which bore interest at 0.81% above 3-month LIBOR, had a rate of 3.58% at December 31, 2018	—		1,625
Floating rate debt due December 2022. This note, which bears interest at 0.90% above 3-month LIBOR, had a rate of 3.03% at December 31, 2019 and 3.67% at December 31, 2018	3,250		3,250
Floating rate debt due December 2022. This note, which bears interest at 0.97% above 3-month LIBOR, had a rate of 3.07% at December 31, 2019	125		—
Floating rate debt due December 2023. This note, which bears interest at 0.99% above 3-month LIBOR, had a rate of 3.12% at December 31, 2019 and 3.76% at December 31, 2018	1,625		1,625
Floating rate debt due December 2023. This note, which bears interest at 0.94% above 3-month LIBOR, had a rate of 2.82% at December 31, 2019	1,765		—
Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at December 31, 2019 and December 31, 2018	24		24
Junior subordinated debt payable to trusts:
Floating rate note due September 2036. This note had an interest rate of 3.59% at December 31, 2019 and 4.49% at December 31, 2018	37		36
Total debt issued by MUAH	7,622		7,355
Debt issued by MUB
Senior debt:
Fixed rate 2.10% notes due December 2022.	698		—
Floating rate debt due December 2022. These notes which bear interest at 0.71% above the Secured Overnight Financing Rate had a rate of 2.26% at December 31, 2019	300		—
Floating rate debt due March 2022. This note, which bears interest at 0.60% above 3-month LIBOR, had a rate of 2.49% at December 31, 2019	300		—
Variable rate FHLB of San Francisco advances due November 2020. These notes bear a combined weighted average rate of 1.90% at December 31, 2019	1,100		—
Fixed rate 2.25% notes due May 2019	—		498
Fixed rate 3.15% notes due April 2022	998		—
Fixed rate FHLB of San Francisco advances due between February 2020 and December 2023. These notes bear a combined weighted average rate of 2.95% at December 31, 2019 and 2.66% at December 31, 2018	5,500		9,100
Other	13		34
Total debt issued by MUB	8,909		9,632
Debt issued by other MUAH subsidiaries
Senior debt due to MUFG Bank, Ltd:
Various floating rate borrowings due between December 2020 and May 2021. These notes, which bear interest above 3-month LIBOR had a weighted average interest rate of 1.94% at December 31, 2019 and 2.80% at December 31, 2018	250		250
Various fixed rate borrowings due between January 2020 and June 2023 with a weighted average interest rate of 2.22% (between1.68% and 2.44%) at December 31, 2019 and 1.82% (between 0.14% and 2.44%) at December 31, 2018	137		244
Subordinated debt due to Affiliate:
Floating rate borrowings due March 2019. These notes, which bore interest above 6-month LIBOR had an interest rate of 4.13% at December 31, 2018	—		75
Non-recourse debt due to MUFG Bank, Ltd:
Various floating rate non-recourse borrowings due December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 2.17% at December 31, 2019 and 4.09% (between 2.75% and 4.17%) at December 31, 2018	3		53
Fixed rate non-recourse borrowings due between March 2020 and July 2023 which had an interest rate of 3.07% (between 1.96% and 3.72%) at December 31, 2019 and 3.05% at December 31, 2018	166		187
Other non-recourse debt:
Various floating rate non-recourse borrowings due December 2023. These notes, which bear interest above 1- or 3-month LIBOR had a weighted average interest rate of 3.93% at December 31, 2019 and 4.21% (between 4.17% and 4.48%) at December 31, 2018	13		89
Fixed rate non-recourse borrowings due December 2026 which had an interest rate of 5.34% at December 31, 2019 and December 31, 2018	29		33
Total debt issued by other MUAH subsidiaries	598		931
Total long-term debt	$	17,129	$	17,918

A summary of maturities for the Company's long-term debt at December 31, 2019 is presented below.



(Dollars in millions)	Debt issued by MUAH		Debt issued by MUB		Debt issued by other MUAH subsidiaries		Total
2020	$	—	$	2,627	$	212	$	2,839
2021	—		1,925		179		2,104
2022	3,774		2,794		41		6,609
2023	3,414		1,550		137		5,101
Thereafter	434		13		29		476
Total long-term debt	$	7,622	$	8,909	$	598	$	17,129

Senior Debt

Certain of the debt issuances are repayable prior to maturity at the Company’s option at a redemption price equal to 100% of par plus accrued interest, plus a make-whole premium. MUAH senior debt was issued under a shelf registration statement with the SEC, which expired as of January 29, 2018.

In December 2019, MUB issued $300 million of floating rate senior bank notes and $700 million of 2.10% senior bank notes. In March 2019, MUB issued $300 million of floating rate senior bank notes and $1.0 billion of 3.15% senior bank notes. These notes were issued as part of MUB's $12 billion bank note program under which MUB may issue, from time to time, senior and subordinated unsecured debt obligations. At December 31, 2019, there was $3.6 billion available for issuance under the program. MUB does not have any firm commitments in place to sell notes under this program.

MUAH Senior Debt due to MUFG Bank, Ltd.

In December 2018, MUAH entered into a Master Internal Total Loss Absorbing Capacity Loan Agreement with MUFG Bank, Ltd., under which MUAH initially borrowed an aggregate of $6.5 billion to comply with the Federal Reserve’s TLAC rule (12 CFR Section 252.165). MUAH may prepay the notes, in whole or in part, two years prior to the stated maturities. The outstanding principal of the notes can be declared due and payable immediately, together with any accrued and unpaid interest, in the event of liquidation, insolvency or similar proceeding with respect to MUAH or all or substantially all of its property. As the TLAC long-term debt is repaid and refinanced from time to time, it is expected that such debt will be replaced by new TLAC long-term debt of similar terms. Under certain circumstances, the Federal Reserve may issue a conversion order pursuant to the TLAC rule (12 CFR Section 252.163) that would result in the conversion of any then-outstanding note, in whole or in part, to MUAH equity issued to MUFG Bank, Ltd.

Senior Debt due to MUFG Bank, Ltd. by other MUAH subsidiaries

MUAH’s subsidiaries also borrow on a long-term basis from MUFG Bank, Ltd. At December 31, 2019, $250 million of senior debt issued to MUFG Bank, Ltd. was floating rate and linked to customer deposits maintained at MUFG Bank, Ltd.’s New York Branch. An additional $137 million was fixed rate, amortizing funding tied to specific assets owned by MUAH’s subsidiaries.

FHLB Senior Debt

The Bank borrows periodically from the FHLB on a medium-term basis. The advances are secured by certain of the Bank's assets and bear either a fixed or a floating interest rate. The floating rates are tied to the three-month LIBOR plus a spread, reset every 90 days. As of December 31, 2019 and December 31, 2018, the Bank had $45.3 billion and $44.3 billion of pledged loans, respectively, as collateral for short-term and medium-term advances from the FHLB and the Federal Reserve Bank.

Subordinated Debt due to Affiliate

MUSA maintains subordinated funding provided by an affiliate. This subordinated debt is a junior obligation to MUSA’s existing and future outstanding senior indebtedness.

Non-recourse Debt

Non-recourse debt serves as funding for certain lease financings offered to customers. The lenders are secured by an interest in the underlying leased assets and have no recourse to the Company or its subsidiaries. Interest and principal on this debt is serviced entirely by the underlying assets and is not supported by the Company.