Published on 11/4/2014 in the Prospect News Investment Grade Daily.
New Issue: National Rural sells $300 million 2.3% five-year collateral trust bonds at 70 bps spread
By Aleesia Forni
Virginia Beach, Nov. 4 – National Rural Utilities Cooperative Finance Corp. priced $300 million of 2.3% five-year collateral trust bonds (A1/A+/) on Tuesday at Treasuries plus 70 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Pricing was at 99.864 to yield 2.329%.
The notes sold tighter than guidance that was set in the 80 bps area over Treasuries.
KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., RBS Securities Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including repayment of short-term debt, primarily consisting of commercial paper, and, along with cash on hand and other funding, to repay $400 million of 1% collateral trust bonds due Feb. 2, 2015.
The market lender for electric cooperatives is based in Herndon, Va.
| Issuer: | National Rural Utilities Cooperative Finance Corp.
|
| Amount: | $300 million
|
| Description: | Collateral trust bond
|
| Maturity: | Nov. 15, 2019
|
| Bookrunners: | KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., RBS Securities Inc., U.S. Bancorp Investments Inc.
|
| Senior co-managers: | J.P. Morgan Securities LLC, MUFG, PNC Capital Markets LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc.
|
| Co-managers: | BBVA Securities Inc., Regions Securities LLC
|
| Coupon: | 2.3%
|
| Price: | 99.864
|
| Yield: | 2.329%
|
| Spread: | Treasuries plus 70 bps
|
| Make-whole call: | Treasuries plus 12.5 bps prior to Oct. 15, 2019, then callable at par
|
| Trade date: | Nov. 4
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody’s: A1
|
| Standard & Poor's: A+
|
| Price talk: | Treasuries plus 80 bps area
|
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