09/09/2024 | Press release | Distributed by Public on 09/09/2024 21:20
Issuer: | National Rural Utilities Cooperative Finance Corporation |
Expected Ratings*: |
A2 / A- / A (Moody's / S&P / Fitch)
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Principal Amount: | $150,000,000 (the notes issued hereby will be part of the same series of notes as the issuer's 5.15% Medium-Term Notes, Series D due June 15, 2029 issued in the principal amount of $350,000,000 on May 10, 2024) |
Security Type: | Senior Unsecured |
Interest Rate:
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5.15% |
Issue Price:
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103.874% of Principal Amount plus accrued interest from and including May 10, 2024 to, but excluding, the Issue Date (the total amount of accrued interest on the Issue Date will be $2,703,750)
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Trade Date:
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September 9, 2024 |
Issue Date: | September 16, 2024 (T+5) |
Maturity Date: | June 15, 2029 |
Benchmark Treasury: | 3.625% due August 31, 2029 |
Benchmark Treasury Yield: | 3.494% |
Spread to Benchmark Treasury: | +73 basis points |
Yield to Worst: | 4.224% |
Interest Payment Dates: | Each June 15 and December 15, and the maturity date, commencing December 15, 2024 |
Optional Redemption: | The Company may redeem the notes at any time prior to May 15, 2029 (the "Par Call Date"), at its option, in whole or in part, at a "make-whole" redemption price equal to the greater of: (1)(a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the notes matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points less (b) interest accrued to the date of redemption, and (2) 100% of the principal amount of the notes to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. |
At any time on or after the Par Call Date, the Company may redeem the notes, at its option, in whole or in part, at a redemption price equal to 100% of the principal amount of the notes then outstanding to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. | |
"Treasury Rate" means, with respect to any redemption date, the yield determined by the Company in accordance with the following two paragraphs.
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The Treasury Rate shall be determined by the Company after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third business day preceding the redemption date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as "Selected Interest Rates (Daily) - H.15" (or any successor designation or publication) ("H.15") under the caption "U.S. government securities-Treasury constant maturities-Nominal" (or any successor caption or heading) ("H.15 TCM"). In determining the Treasury Rate, the Company shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the Par Call Date (the "Remaining Life"); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields - one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life - and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the redemption date. | |
If on the third business day preceding the redemption date H.15 TCM or any successor designation or publication is no longer published, the Company shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day preceding such redemption date of the United States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Company shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Company shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. | |
Payment at Maturity: | The payment at maturity will be 100% of the Principal Amount plus accrued and unpaid interest, if any. |
Basis: | As Principal |
Agents: | Mizuho Securities USA LLC |
MUFG Securities Americas Inc. | |
Truist Securities, Inc. | |
KeyBanc Capital Markets Inc. | |
RBC Capital Markets, LLC | |
Regions Securities LLC | |
Form of Note: | Book-Entry |
(Book-Entry or Certificated) | |
Denominations: | $2,000 x $1,000 |
Other Terms: | None |