National Rural Utilities Cooperative Finance Corporation Sells $500 Million of Collateral Trust Bonds
September 17 2009 - 11:26AM
Marketwired
National Rural Utilities Cooperative Finance Corporation (National
Rural) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) announced today that it
has closed its previously announced underwritten public offering of
a total of $500 million in Collateral Trust Bonds: $250 million of
2.625% Collateral Trust Bonds due 2012; and $250 million of 3.875%
Collateral Trust Bonds due 2015.
"National Rural received strong interest from the investor
community and we are delighted with the pricing on these bonds,"
said Steven Lilly, National Rural's Chief Financial Officer.
The three-year bonds priced at a spread of 125 basis points over
the yield on the three-year benchmark U.S. Treasury and the
six-year bonds priced at a spread of 158 basis points over the
yield on the five-year benchmark U.S. Treasury. These bonds are
rated A+ by Standard & Poor's Corporation, A1 by Moody's
Investor Service and A by Fitch Ratings.
The net proceeds from the offering will be used for general
corporate purposes, including the repayment of short-term debt,
primarily commercial paper.
"The strong interest in this offering shows the confidence that
investors have in National Rural and the electric cooperative
sector," said Sheldon C. Petersen, Governor and Chief Executive
Officer of National Rural.
Deutsche Bank Securities Inc., RBS Securities Inc., UBS
Securities LLC, Mitsubishi UFJ Securities (USA), Inc., Mizuho
Securities USA Inc., and Scotia Capital (USA) Inc. acted as joint
lead book-running managers. The senior co-managers were KeyBanc
Capital Markets Inc. and U.S. Bancorp Investments, Inc. The
co-managers were Comerica Securities, Inc. 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.
About National Rural Utilities Cooperative Finance Corporation:
National Rural is a cooperative that serves the nation's rural
utility systems, the majority of which are electric cooperatives.
With $20 billion in assets, National Rural provides its
member-owners with an assured source of market-priced capital and
financial products and services. National Rural can be found online
at nrucfc.org.
Contact: Mike O'Brien, Vice President Corporate Communications
703-709-6709 Email Contact Andrew Don, Vice President Capital
Market Relations 703-709-6869 Email Contact
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