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Capital Securities Issued by Unconsolidated Subsidiaries (Tables)
 12 Months Ended
Dec. 31, 2011
Capital Securities Issued by Unconsolidated Subsidiaries (Tables) [Abstract]  
Disclosure of Capital Securities Issued by Unconsolidated Subsidiaries
                                         

dollars in millions

 

  

Capital            
Securities,             
Net of Discount        (a)

 

    

    Common        
    Stock         

 

    

Principal        
Amount of        
Debentures,        
Net of Discount     (b)

 

    

Interest Rate        
of Capital        
Securities and        
Debentures     (c)

 

    

Maturity

of Capital
Securities and
Debentures

 

  

December 31, 2011

                                       

KeyCorp Capital I

  $ 156     $ 6     $ 162       1.112  %      2028  

KeyCorp Capital II

    114       4       118       6.875        2029  

KeyCorp Capital III

    148       4       152       7.750        2029  

KeyCorp Capital VII

    190       5       195       5.700        2035  

KeyCorp Capital X (d)

     598       —         598       8.000        2068  

Total

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

 

 

    

 

 

    

 

 

                  
                                         

December 31, 2010

  $ 1,797     $ 26     $ 1,948       6.546  %      —  
   

 

 

    

 

 

    

 

 

                  
                                         

 

(a) The capital securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of capital securities carries an interest rate identical to that of the related debenture. Certain capital securities include basis adjustments related to fair value hedges totaling $160 million at December 31, 2011, and $6 million at December 31, 2010. See Note 8 (“Derivatives and Hedging Activities”) for an explanation of fair value hedges.

 

(b) We have the right to redeem our debentures: (i) in whole or in part, on or after July 1, 2008 (for debentures owned by KeyCorp Capital I); March 18, 1999 (for debentures owned by KeyCorp Capital II); July 16, 1999 (for debentures owned by KeyCorp Capital III); March 15, 2013 (for debentures owned by KeyCorp Capital X); and (ii) in whole at any time within 90 days after and during the continuation of: a “tax event,” a “capital treatment event”, and an “investment company event,” with respect to KeyCorp Capital VII and X only; and with respect to KeyCorp Capital X only a “rating agency event” (as each is defined in the applicable indenture). If the debentures purchased by KeyCorp Capital I, KeyCorp Capital VII and KeyCorp Capital X are redeemed before they mature, the redemption price will be the principal amount, plus any accrued but unpaid interest. However, in the event KeyCorp Capital X is redeemed prior to March 15, 2013 and within 90 days of a “rating agency event” (as defined in the applicable indenture), a “make whole redemption price” is applied upon such redemption to KeyCorp Capital X securities. 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 debentures shown above includes adjustments related to hedging with financial instruments totaling $160 million at December 31, 2011, and $131 million at December 31, 2010.

 

(c) The interest rates for KeyCorp Capital II, KeyCorp Capital III, KeyCorp Capital VII, and KeyCorp Capital X 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.

 

(d) In connection with each of these issuances of capital securities, KeyCorp entered into a replacement capital covenant (“RCC”). Should KeyCorp redeem or purchase these securities or related subordinated debentures, absent receipt of consent from the holders of the “Covered Debt” or certain limited exceptions, KeyCorp would need to comply with the applicable RCC.