N@N

National Rural Utilities Cooperative Finance Corporation (National Rural) : National Rural Signs $1 Billion Secured Note Facili

^{Published on 2009-05-27 14:39:13, Last Modified on 2009-05-27 14:39:57 - Market Wire}
 

HERNDON, VA--(Marketwire - May 27, 2009) - National Rural Utilities Cooperative Finance Corporation (NYSE: [ NRU ]) (NYSE: [ NRN ]) (NYSE: [ NRC ]) (National Rural) has signed a note purchase agreement with the Federal Agricultural Mortgage Corporation (Farmer Mac) and Farmer Mac Mortgage Securities Corporation, pursuant to which National Rural will sell up to $1 billion of notes.

This is one of several transactions that National Rural has conducted with Farmer Mac since 2005. This agreement, like the other note purchase agreements between the parties, will be secured by eligible loans within specific per borrower limits.

"Our partnership with Farmer Mac helps our members, America's electric cooperatives, to fulfill their mission of service to their member-consumers," said National Rural CEO Sheldon C. Petersen. "In the current capital markets, Farmer Mac is demonstrating its value to rural America."

The agreement is structured as a seven-year revolving credit facility that allows National Rural to borrow, repay and re-borrow funds at any time or from time to time as market conditions permit, provided that the principal amount at any time outstanding under this facility is not more than $1 billion. National Rural may select a variable rate or fixed rate at the time of each advance. The maturity date of any advance under this agreement must not be later than Dec. 31, 2016, or such other date as agreed to by the parties.

Farmer Mac is a stockholder-owned instrumentality of the United States chartered by Congress to establish a secondary market for agricultural real estate and rural housing mortgage loans and rural utilities loans and to facilitate capital market funding for USDA-guaranteed farm program and rural development loans. Additional information about Farmer Mac is available at [ www.farmermac.com ].

National Rural is a non-stock, member-owned finance cooperative that serves the nation's rural utility systems, the majority of which are electric cooperatives and their subsidiaries. With more than $20 billion in assets, National Rural provides its member-owners with an assured source of low-cost capital and state-of-the-art financial products and services. By providing financing that supports reliable, affordable electricity, National Rural helps enhance the nation's electric infrastructure and improve the quality of life in rural America. Visit [ www.nrucfc.coop ] for more information about National Rural.