NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEYCORP AND SUBSIDIARIES 12. LONG-TERM DEBT The components of Key’s long-term debt, presented net of unamortized discount where applicable, were as follows: December 31, dollars in millions 2003 2002 Senior medium-term notes  due through 2006 a $ 1,167 $ 1,445 Subordinated medium-term notes  due through 2003 a GLYPH<209> 45 Senior euro medium-term notes  due through 2003 b GLYPH<209> 50 8.00%  Subordinated notes due 2004 c 125 125 7.50%  Subordinated notes due 2006 c 250 250 6.75%  Subordinated notes due 2006 c 200 200 6.625% Subordinated notes due 2017 c 25 24 7.826% Subordinated notes due 2026 d 361 GLYPH<209> 8.25%  Subordinated notes due 2026 d 154 GLYPH<209> 1.90%  Subordinated notes due 2028 d 218 GLYPH<209> 6.875% Subordinated notes due 2029 d 165 GLYPH<209> 7.75%  Subordinated notes due 2029 d 197 GLYPH<209> 5.875% Subordinated notes due 2033 d 180 GLYPH<209> 6.125% Subordinated notes due 2033 d 77 GLYPH<209> All other long-term debt j 150 36 Total parent company k 3,269 2,175 Senior medium-term bank notes  due through 2039 e 3,141 3,854 Senior euro medium-term bank notes  due through 2008 f 3,754 4,792 6.50% Subordinated  remarketable  notes due 2027 g 311 311 6.75%  Subordinated notes due 2003 g GLYPH<209> 200 7.25%  Subordinated notes due 2005 g 200 200 7.125% Subordinated notes due 2006 g 250 250 7.55%  Subordinated notes due 2006 g 75 75 7.375% Subordinated notes due 2008 g 70 70 7.50%  Subordinated notes due 2008 g 165 165 7.00%  Subordinated notes due 2011 g 504 607 7.30%  Subordinated notes due 2011 g 106 107 5.70%  Subordinated notes due 2012 g 300 300 5.70%  Subordinated notes due 2017 g 200 200 4.625% Subordinated notes due 2018 g 100 GLYPH<209> 6.95%  Subordinated notes due 2028 g 300 300 Structured repurchase agreements  due 2005 l 825 GLYPH<209> Lease GLYPH<222>nancing debt due through 2006 h 380 435 Federal Home Loan Bank advances  due through 2033 i 888 1,018 All other long-term debt j 456 546 Total subsidiaries 12,025 13,430 Total long-term debt $15,294 $15,605 Key uses interest rate swaps and caps, which modify the repricing and maturity characteristics of certain long-term debt, to manage interest rate risk. For more information about such GLYPH<222>nancial instruments, see Note 19 (GLYPH<210>Derivatives and Hedging ActivitiesGLYPH<211>), which begins on page 80. a At December 31, 2003, the senior medium-term notes had a weighted-average  interest rate of 2.42 %. At December 31, 2002, the senior medium-term notes had  a weighted-average interest rate of 2.54%, and the subordinated medium-term notes  had a weighted-average interest rate of 7.30%. These notes had a combination of GLYPH<222>xed and GLYPH<223>oating interest rates. b Senior euro medium-term notes had a weighted-average interest rate of 1.62%  at December 31, 2002. These notes had a GLYPH<223>oating interest rate based on the  three-month LIBOR. c These notes may not be redeemed or prepaid prior to maturity. d These notes had a weighted-average interest rate of 6.44% at December 31, 2003.  The interest rates on these notes are GLYPH<222>xed with the exception of the 1.90 % note, which has a GLYPH<223>oating interest rate equal to three-month LIBOR plus 74 basis points; it reprices quarterly. See Note 13 (GLYPH<210>Capital Securities Issued By Unconsolidated SubsidiariesGLYPH<211>)  below for a description of these notes. e Senior medium-term bank notes of subsidiaries had weighted-average interest rates  of 2.66% at December 31, 2003, and 2.59% at December 31, 2002. These notes had  a combination of GLYPH<222>xed and GLYPH<223>oating interest rates. f Senior euro medium-term bank notes had weighted-average interest rates of 1.25%  at December 31, 2003, and 1.79% at December 31, 2002. These notes, which are obligations of KBNA, had a combination of GLYPH<222>xed interest rates and GLYPH<223>oating interest  rates based on LIBOR. g These notes are all obligations of KBNA, with the exception of the 7.55% notes, which  are obligations of Key Bank USA. None of the subordinated notes may be redeemed  prior to their maturity dates.  i Long-term advances from the Federal Home Loan Bank had weighted-average interest rates of 1.52% at December 31, 2003, and 1.71% at December 31, 2002. These advances, which had a combination of GLYPH<222>xed and GLYPH<223>oating interest rates, were secured  by real estate loans and securities totaling $1.2 billion at December 31, 2003, and  $1.4 billion at December 31, 2002.  j Other long-term debt, consisting of industrial revenue bonds, capital lease obligations,  and various secured and unsecured obligations of corporate subsidiaries, had weighted- average interest rates of 4.59% at December 31, 2003, and 6.29% at December 31, 2002. k At December 31, 2003, the entire amount registered under KeyCorpGLYPH<213>s universal shelf registration statement GLYPH<222>led with the Securities and Exchange Commission had been allocated for the issuance of medium-term notes and the unused capacity totaled $1.4 billion.  l The structured repurchase agreements had a weighted-average interest rate of 2.02%  at December 31, 2003. These borrowings had a GLYPH<223>oating interest rate based on a formula  that incorporates the three-month LIBOR and the GLYPH<222>ve-year constant maturity swap rate.  The maximum weighted-average interest rate that can be charged on these borrowings  is 3.83%. h Lease GLYPH<222>nancing debt had weighted-average interest rates of 6.35% at December 31, 2003, and 7.14% at December 31, 2002. This category of debt consists of primarily nonrecourse debt collateralized by leased equipment under operating, direct GLYPH<222>nancing and sales type leases. Scheduled principal payments on long-term debt over the next five years are as follows: in millions Parent Subsidiaries Total 2004 $640 $4,878 $5,518 2005 403 2,302 2,705 2006 852 1,103 1,955 2007 GLYPH<209> 1,444 1,444 2008 GLYPH<209> 276 276  13. CAPITAL SECURITIES ISSUED BY UNCONSOLIDATED SUBSIDIARIES KeyCorp owns the outstanding common stock of business trusts that issued corporation-obligated mandatorily redeemable preferred capital securities (“capital securities”); the trusts used the proceeds from the issuance of their capital 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 capital securities.  69 NEXT PAGE BACK TO CONTENTS SEARCH PREVIOUS PAGE