By Andrea Heisinger
Omaha, June 23 - National Rural Utilities Cooperative Finance Corp. priced $1.3 billion collateral trust bonds (A1/A+/A+) in two tranches Monday, according to an informed source and an FWP filing with the Securities and Exchange Commission.
The $400 million of two-year floating-rate bonds priced at par to yield three-month Libor plus 77.5 basis points.
The $900 million of 5.5% five-year bonds priced at 99.844 to yield 5.536%, or Treasuries plus 190 bps. They have a make-whole redemption option of Treasuries plus 30 bps.
Bookrunners were Merrill Lynch, Pierce, Fenner & Smith Inc., UBS Investment Bank, HSBC Securities and Scotia Capital.
Senior co-managers were KeyBanc Capital Markets Inc., Lazard Capital Markets LLC, Mizuho Securities USA Inc. and SunTrust Robinson Humphrey Inc.
Junior co-managers were Comerica Securities Inc., PNC Capital Markets, LLC and Piper Jaffray & Co.
Proceeds will be used for general corporate purposes, including repayment of short-term debt, primarily commercial paper.
The financial products company for the nation's electric cooperative is based in Herndon, Va.
| Issuer: | National Rural Utilities Cooperative Finance Corp.
|
| Issue: | Collateral Trust bonds
|
| Amount: | $1.3 billion
|
| Bookrunners: | Merrill Lynch, Pierce, Fenner & Smith Inc., UBS Investment Bank, HSBC Securities, Scotia Capital
|
| Senior co-managers: | KeyBanc Capital Markets Inc., Lazard Capital Markets LLC, Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc.
|
| Junior co-managers: | Comerica Securities Inc., PNC Capital Markets, LLC, Piper Jaffray & Co.
|
| Trade date: | June 23
|
| Settlement date: | June 30
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| Two-year bonds
|
| Amount: | $400 million
|
| Issue: | Floating-rate collateral trust bonds
|
| Maturity: | 2010
|
| Coupon: | Three-month Libor plus 77.5 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 77.5 bps
|
|
|
| Five-year bonds
|
| Amount: | $900 million
|
| Issue: | Fixed-rate collateral trust bonds
|
| Maturity: | July 1, 2013
|
| Coupon: | 5.5%
|
| Price: | 99.844
|
| Yield: | 5.536%
|
| Spread: | Treasuries plus 190 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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