National Rural Utilities closes $1.72 billion revolving commitments

By Susanna Moon

Chicago, Oct. 21 - National Rural Utilities Cooperative Finance Corp. entered into two revolving credit agreements Friday, one for $884,875,000 due Oct. 21, 2015 and the other for $834,875,000 due Oct. 21, 2016, according to an 8-K filing with the Securities and Exchange Commission.

The committed revolving credit availability will be used for commercial paper backup and general corporate purposes.

The closing terms required the company to terminate its five-year facility and its three-year facility, reducing the amount of commitments by $714 million under the replacement facility.

Under each agreement, the company may request letter-of-credit issuances for up to $100 million and to raise the total amount of commitments to up to $1.3 billion by adding lenders or by increasing the commitment of existing lenders.

The company's three-year agreement totaling $1.125 billion is still in effect and expires on March 21, 2014.

The total committed credit under the company's three facilities was $2,844,750,000 as of Oct. 21.

The available commitment under the revolving credit facilities is reduced by the amount of letters of credit that are issued. As a result, the available commitment under the revolving credit facilities was $2,836,114,000 as of Oct. 21.

National Rural Utilities is a Dulles, Va.-based lender for electric cooperatives.

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