LONG-TERM DEBT

Long-term debt is summarized as follows:



	December 31,
(In millions)	2018		2017

Subordinated notes	$	87	$	247
Senior notes	637		135
Capital lease obligations	—		1
Total	$	724	$	383

The preceding carrying values represent the par value of the debt adjusted for any unamortized premium or discount, unamortized debt issuance costs, as well as valuation adjustments for fair value swaps. During 2018, the Bank issued $500 million par value of senior notes with an interest rate of 3.5% and a maturity date of August 27, 2021. Also during 2018, the Bank called and redeemed $162 million of 5.65% subordinated notes maturing November 15, 2023. During 2017, $153 million of our senior notes matured.

Subordinated Notes

Subordinated notes were issued by the Bank and consist of the following at December 31, 2018:



(Dollar amounts in millions)	Subordinated notes
Coupon rate	Balance		Par amount		Maturity

6.95%	$	87	$	88	Sep 2028

This subordinated note is unsecured and interest is payable quarterly. Interest payments commenced December 15, 2013 to the earliest possible redemption date of September 15, 2023, after which the interest rate changes to an annual floating rate equal to 3mL+3.89%.

Senior Notes

Senior notes were issued by the Bank and consist of the following at December 31, 2018:



(Dollar amounts in millions)	Senior notes
Coupon rate	Balance		Par amount		Maturity

4.50%	$	135	$	136	June 2023
3.50%	502		500		August 2021
Total	$	637	$	636

These notes are unsecured and interest is payable semiannually. The notes were issued under a shelf registration filed with the Securities and Exchange Commission (“SEC”) and were sold via the Bank’s online auction process and direct sales. The notes are not redeemable prior to maturity.

Maturities of Long-term Debt

Maturities of long-term debt are as follows for the years succeeding December 31, 2018:



(In millions)

2019	$	—
2020	—
2021	502
2022	—
2023	135
Thereafter	87
Total	$	724

These maturities do not include the associated hedges.