For Release: November 01, 2010
Contact: Brad Captain, Corporate Communications; Ling Wang, Banking & Investor Relations
HERNDON, Va.—National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRC) announced today that it has closed its previously announced underwritten public offering of $650 million in collateral trust bonds (CTBs): $300 million of 1.125-percent CTBs due 2013 and $350 million of 1.9-percent CTBs due 2015.
“The strong interest in CFC’s latest offering in the financial markets shows the tremendous confidence investors have in CFC and in the strength and stability of electric cooperatives,” said CFC CEO Sheldon C. Petersen.
The three-year bonds priced at a spread of 60 basis points over the yield on the three-year benchmark U.S. Treasury, and the five-year bonds priced at a spread of 75 basis points over the yield on the five-year benchmark U.S. Treasury. These bonds are rated A+ by Standard & Poor’s Corporation and A1 by Moody’s Investors Service.
The net proceeds from the offering will be used for general corporate purposes, including the repayment of short-term debt, primarily commercial paper.
“We were very pleased with the extremely positive reaction from investors,” said Andrew Don, CFC senior vice president and treasurer. “It is an affirmation of the long-term strategy CFC has in place to continue to enhance its financial strength and reinforce its market position as the premier private lender to the rural utility industry.”
Banc of America Securities LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and KeyBanc Capital Markets Inc. acted as joint lead book-running managers. The senior co-managers were Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc. The co-managers were RBC Capital Markets Corporation and PNC Capital Markets LLC.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
National Rural Utilities Cooperative Finance Corporation (CFC) is a non-governmental cooperative that provides capital and industry-leading financial products to the nation’s rural utility systems. With more than $20 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of its member-owners.