USAA Capital gets needed consents to amend 2.125% notes due 2030

By Marisa Wong

Los Angeles, March 3 – USAA Capital Corp. announced the results of its Feb. 22 consent solicitation for its $400 million 2.125% fixed-rate medium-term notes, series C, due 2030.

The issuer had received consents from holders of a majority in principal amount of the outstanding notes, enough to adopt the proposed amendment to the notes, according to a Friday press release.

The issuer said it expects the amendment will become effective on March 6.

The company will pay each consenting holder a cash payment of $2.50 per $1,000 principal of notes.

As previously reported, the amendment will add repurchase transactions to the types of transactions to which the negative pledge covenant does not apply.

This change will conform the 2.125% notes with the issuer’s outstanding notes and other debt in order to provide flexibility with respect to future repurchase transactions entered into in the ordinary course of business by the issuer and its subsidiaries, including its banking subsidiary, USAA Federal Savings Bank.

All other terms of the notes will remain unchanged.

The consent solicitation expired at 5 p.m. ET on March 2.

BofA Securities (888 292-0070, 980 387-3907) is the solicitation agent.

Global Bondholder Services Corp. (855 654-2014, 212 430-3774) is the information and tabulation agent.

USAA Capital is a San Antonio-based insurance holding company and subsidiary of United Services Automobile Association.

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