By Cristal Cody
Tupelo, Miss., Jan. 22 – National Rural Utilities Cooperative Finance Corp. priced an upsized $1 billion of bonds in two tranches on Wednesday, according to a market source and FWP filings with the Securities and Exchange Commission.
The company sold $500 million of 1.75% two-year medium-term senior notes (A2/A/A) at 99.912 to yield 1.796% and a spread of Treasuries plus 27 basis points.
The issue was upsized from $300 million and priced tighter than initial talk in the 40 bps over Treasuries area.
An upsized $500 million tranche of 2.4% 10-year collateral trust bonds (A1/A/A+) priced at 99.562 to yield 2.449%. The bonds came with a Treasuries plus 68 bps spread, compared to talk in the 80 bps to 85 bps spread area.
The tranche was upsized from $350 million.
PNC Capital Markets LLC and U.S. Bancorp Investments Inc. were the bookrunners on the two-year notes.
MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and U.S. Bancorp were the bookrunners on the 10-year tranche.
Proceeds will be used for general corporate purposes.
The market lender for electric cooperatives is based in Herndon, Va.
| Issuer: | National Rural Utilities Cooperative Finance Corp.
|
| Amount: | $1 billion
|
| Description: | Bonds
|
| Trade date: | Jan. 22
|
| Settlement date: | Feb. 5
|
| Distribution: | SEC registered
|
|
|
| Two-year bonds
|
| Amount: | $500 million
|
| Description: | Series D medium-term senior notes
|
| Maturity: | Jan. 21, 2022
|
| Bookrunners: | PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Coupon: | 1.75%
|
| Price: | 99.912
|
| Yield: | 1.796%
|
| Spread: | Treasuries plus 27 bps
|
| Call feature: | None
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Price guidance: | Treasuries plus 40 bps area
|
|
|
| 10-year bonds
|
| Amount: | $500 million
|
| Description: | Collateral trust bonds
|
| Maturity: | March 15, 2030
|
| Bookrunners: | MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Co-manager: | Regions Securities LLC
|
| Coupon: | 2.4%
|
| Price: | 99.562
|
| Yield: | 2.449%
|
| Spread: | Treasuries plus 68 bps
|
| Call features: | Make-whole call at price equal to greater of par or Treasuries plus 12.5 bps before Dec. 15, 2029; thereafter at par
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Fitch: A+
|
| Price guidance: | Treasuries plus 80 bps-85 bps area
|
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