CoBank starts Dutch auction tender for 7.875% subordinated notes

By Jennifer Chiou

New York, Nov. 14 - CoBank ACB announced the launch of its Dutch auction tender offer for up to $150 million of its $500 million of outstanding 7.875% subordinated notes due 2018.

The bank is looking to retire some of its public debt in order to cut costs, according to a news release.

The payout will be determined using the 0.75% Treasury due Oct. 31, 2017 plus a spread. The minimum acceptable spread is 140 basis points, and the maximum spread is 220 bps.

Those who tender prior to 5 p.m. ET on Nov. 28 will be eligible to receive the total consideration, which includes an early tender premium equal to $30.00 per $1,000 principal amount of notes. CoBank will also pay accrued interest.

The offer will end at 11:59 p.m. ET on Dec. 12.

The withdrawal deadline coincides with the early deadline.

Those who validly tender without specifying a bid spread will be deemed to have specified the maximum spread.

Morgan Stanley & Co. LLC is the dealer manager (800 624-1808 or call collect 212 761-1057). Global Bondholder Services Corp. is the information agent (212 430-3774 for banks and brokers only or 866 540-1500).

The Denver-based issuer is a cooperative agriculture bank.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.