New Issue: National Rural Utilities prices $1 billion in collateral trust bonds to yield 10.5%

By Sheri Kasprzak

New York, Oct. 24 - The National Rural Utilities Cooperative Finance Corp. priced $1 billion in collateral trust bonds, said a pricing sheet released Friday.

The bonds (A1/A+/A+) priced Thursday with a 10.375% coupon, priced at 99.237 to yield 10.5%. The bonds have a spread of Treasuries plus 680.1 bps and a make-whole call at Treasuries plus 50 bps.

The bonds are due Nov. 1, 2018, and were sold off a shelf registered with the Securities and Exchange Commission.

Deutsche Bank Securities Inc.; J.P. Morgan Securities Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc.; and Greenwich Capital Markets, Inc. were the joint bookrunners for the sale. The co-managers were KeyBanc Capital Markets, Inc.; Lazard Capital Markets LLC; Mizuho Securities USA Inc.; SunTrust Robinson Humphrey, Inc.; and U.S. Bancorp Investments, Inc.

Proceeds will be used for general corporate purposes, including the repayment of short-term debt.

Issuer:	National Rural Utilities Cooperative Finance Corp.
Issue:	Collateral trust bonds
Amount:	$1 billion
Maturity:	Nov. 1, 2018
Coupon:	10.375%
Price:	99.237
Yield:	10.5%
Spread:	680.1 bps
Call:	Make-whole at Treasuries plus 50 bps
Underwriters:	Deutsche Bank Securities, J.P. Morgan Securities, Merrill Lynch, Pierce, Fenner & Smith Inc., and Greenwich Capital Markets (lead); KeyBanc Capital Markets, Lazard Capital Markets, Mizuho Securities USA, SunTrust Robinson Humphrey, and U.S. Bancorp Investments
Ratings:	Moody's: A1
	Standard & Poor's: A+
	Fitch: A+
Pricing date:	Oct. 23
Settlement date:	Oct. 30

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