By Devika Patel
Knoxville, Tenn., Jan. 28 – National Rural Utilities Cooperative Finance Corp. priced $950 million of collateral trust bonds (A1/A/A+) in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $450 million of 3.7% collateral trust bonds due March 15, 2029. Pricing was at 99.777 to yield 3.726%, or 98 basis points over Treasuries.
There was $500 million of 4.3% collateral trust bonds due March 15, 2049. These notes priced at 99.658 to yield 4.32%, or 125 bps over Treasuries.
J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are the bookrunners.
Proceeds will be used to repay National Rural Utilities’ $300 million of 2.15% collateral trust bonds due Feb. 1, 2019 and $350 million of 1.65% collateral trust bonds due Feb. 8, 2019, to repay short-term debt and for general corporate purposes.
The market lender for electric cooperatives is based in Herndon, Va.
| Issuer: | National Rural Utilities Cooperative Finance Corp.
|
| Amount: | $950 million
|
| Description: | Collateral trust bonds
|
| Bookrunners: | J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
|
| Co-managers: | MUFG, RBC Capital Markets LLC, Regions Securities LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Trade date: | Jan. 28
|
| Settlement date: | Jan. 31
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| 2029 bonds
|
| Amount: | $450 million
|
| Maturity: | March 15, 2029
|
| Coupon: | 3.7%
|
| Price: | 99.777
|
| Yield: | 3.726%
|
| Spread: | Treasuries plus 98 bps
|
| Call: | Make-whole call prior to Dec. 15, 2028, then callable at par
|
|
|
| 2049 bonds
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| Amount: | $500 million
|
| Maturity: | March 15, 2049
|
| Coupon: | 4.3%
|
| Price: | 99.658
|
| Yield: | 4.32%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps prior to Sept. 15, 2048, then callable at par
|
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