By Susanna Moon
Chicago, April 21 - National Rural Utilities Cooperative Finance Corp. said it began an exchange offer for up to $175 million principal amount of its $660,275,000 outstanding 8% medium-term notes, series C, due 2032.
In exchange for tendered notes, the company is offering to issue 4.023% collateral trust bonds due Nov. 1, 2032 and cash. The total exchange value will be 70% new notes and 30% cash.
The new bonds will comprise part of the same series as, and are expected to be fungible for U.S. federal income tax purposes with, the $379,372,000 principal amount of 4.023% collateral trust bonds due Nov. 1, 2032 issued on Oct. 16, 2012, according to a company press release.
Pricing for the exchange offer will be set using a modified Dutch auction, using bid prices of between $1,415 and $1,445 for each $1,000 principal amount.
The total purchase price will include an early participation amount equal to $30 per $1,000 principal amount of notes tendered by 5 p.m. ET on May 2, the early tender date.
Those who tender after the early tender deadline will receive the total amount less the early premium.
Holders also will receive accrued interest for the old notes exchanged in the offer less an amount equal to accrued interest on the new bonds at settlement.
The exchange offer will end at midnight ET on May 16.
Tendered notes may be withdrawn by the early tender deadline.
D.F. King & Co., Inc. (800 967-4604, collect 212 269-5550 for banks and brokerage firms or by email at NRUCFC@dfking.com) is the information agent.
The market lender for electric cooperatives is based in Dulles, Va.
New notes
| Issuer: | National Rural Utilities Cooperative Finance Corp.
|
| Issue: | Collateral trust bonds
|
| Amount: | Up to $175 million
|
| Maturity: | Nov. 1, 2032
|
| Coupon: | 4.023%
|
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