National Rural Utilities Cooperative Finance Corporation (NRUC), a finance organization serving rural utilities, has successfully closed the issuance and sale of $350 million in collateral trust bonds. The bonds, which carry a 5.00% interest rate and are due in 2034, were sold pursuant to an underwriting agreement with several prominent financial institutions, including J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, and U.S. Bancorp Investments, Inc.
The transaction, which took place on Thursday, August 8, 2024, was completed on Monday, with the official closure of the offering. The newly issued bonds are expected to be listed on the New York Stock Exchange under the trading symbol NRUC 26.
The underwriting agreement and the form of the global certificate for the bonds have been filed with the SEC and are incorporated by reference into this report. Additionally, legal opinions regarding the legality and tax matters of the bonds have been provided by Hogan Lovells US LLP, as documented in the filing.
This financial move by NRUC represents a strategic effort to raise capital for the organization. The proceeds from the bond sale are likely to be used to support the company's operations and finance its various initiatives aimed at serving its member utilities.
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