Note 12: Subordinated Debentures Issued to Capital Trusts

12 Months Ended

Dec. 31, 2018

Notes

Note 12: Subordinated Debentures Issued to Capital Trusts

Note 12:        Subordinated Debentures Issued to Capital Trusts

In November 2006, Great Southern Capital Trust II (Trust II), a statutory trust formed by the Company for the purpose of issuing the securities, issued a $25.0 million aggregate liquidation amount of floating rate cumulative trust preferred securities.  The Trust II securities bear a floating distribution rate equal to 90-day LIBOR plus 1.60%.  The Trust II securities became redeemable at the Company’s option in February 2012, and if not sooner redeemed, mature on February 1, 2037.  The Trust II securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended.  The gross proceeds of the offering were used to purchase Junior Subordinated Debentures from the Company totaling $25.8 million and bearing an interest rate identical to the distribution rate on the Trust II securities.  The initial interest rate on the Trust II debentures was 6.98%.  The interest rate was 4.14% and 2.98% at December 31, 2018 and 2017, respectively. 

At December 31, 2018 and 2017, subordinated debentures issued to capital trusts are summarized as follows:

	2018	2017
	(In Thousands)
Subordinated debentures	$                 25,774	$                 25,774