Company: KEY-PI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048757
Chunk: 207

Company: KEYCORP /NEW/
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 207
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 proceeds from the issuance of their trust preferred securities and common stock to buy debentures issued by KeyCorp. These debentures are the trusts’ only assets; the interest payments from the debentures finance the distributions paid on the mandatorily redeemable trust preferred securities. The outstanding common stock of these business trusts is recorded in Other investments on the Consolidated Balance Sheets. We unconditionally guarantee the following payments or distributions on behalf of the trusts: •required distributions on the trust preferred securities;•the redemption price when a capital security is redeemed; and•the amounts due if a trust is liquidated or terminated.The Regulatory Capital Rules require us to treat our mandatorily redeemable trust preferred securities as Tier 2 capital.

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The trust preferred securities, common stock, and related debentures are summarized as follows:Dollars in millionsTrust Preferred Securities, Net of Discount (a)Common StockPrincipal Amount of Debentures, Net of Discount (b)Interest Rate of Trust Preferred Securities and Debentures (c)Maturity of Trust Preferred Securities and DebenturesSeptember 30, 2025KeyCorp Capital I$156 $6 $162 5.292 %2028KeyCorp Capital II86 4 90 6.875 2029KeyCorp Capital III111 4 115 7.750 2029HNC Statutory Trust III21 1 22 5.857 2035HNC Statutory Trust IV21 1 22 5.852 2036Willow Grove Statutory Trust I18 1 19 5.609 2037Westbank Capital Trust II8 — 8 6.455 2034Westbank Capital Trust III8 — 8 6.455 2034Total$429 $17 $446 6.355 %— December 31, 2024$427 $17 $444 6.519 %— (a)The trust preferred securities must be redeemed when the related debentures mature, or earlier if provided in the governing indenture. Each issue of trust preferred securities carries an interest rate identical to that of the related debenture. The principal amount of certain debentures include debt issuance costs and basis adjustments related to fair value hedges totaling $16 million and $14 million at September 30, 2025, and December 31, 2024,