By Andrea Heisinger
New York, Sept. 9 - National Rural Utilities Cooperative Finance Corp. priced $500 million collateral trust bonds (A1/A+/A) in two tranches Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The deal "went really well" on a busy day, a source close to the sale said.
A $250 million tranche of 2.625% three-year notes priced at 99.851 to yield 2.677%, or Treasuries plus 125 basis points. The notes have a make-whole call at Treasuries plus 20 bps.
The $250 million of 3.875% six-year notes priced at 99.587 to yield 3.953%, or Treasuries plus 158 bps. The tranche has a make-whole call of Treasuries plus 30 bps.
Bookrunners were Deutsche Bank Securities Inc., RBS Securities Inc. and UBS Investment Bank. Passive bookrunners were Mitsubishi UFJ Securities, Mizuho Securities USA Inc. and Scotia Capital.
Senior co-managers were KeyBanc Capital Markets Inc. and U.S. Bancorp Investments, and junior co-managers were Comerica Securities and PNC Capital Markets.
Proceeds will be used for general corporate purposes, including repayment of short-term debt, primarily consisting of commercial paper.
The private-market lender to the nation's electric cooperative is based in Herndon, Va.
| Issuer: | National Rural Utilities Cooperative Finance Corp.
|
| Issue: | Collateral trust bonds
|
| Total amount: | $500 million
|
| Bookrunners: | Deutsche Bank Securities Inc., RBS Securities Inc., UBS Investment Bank (active), Mitsubishi UFJ Securities, Mizuho Securities USA Inc., Scotia Capital (passive)
|
| Senior-co-managers: | KeyBanc Capital Markets Inc., U.S. Bancorp Investments
|
| Junior co-managers: | Comerica Securities, PNC Capital Markets
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A
|
|
|
| Three-year notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 16, 2012
|
| Coupon: | 2.625%
|
| Price: | 99.851
|
| Yield: | 2.677%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| Six-year notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 16, 2015
|
| Coupon: | 3.875%
|
| Price: | 99.587
|
| Yield: | 3.953%
|
| Spread: | Treasuries plus 158 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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