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National Rural Utilities Cooperative Finance Corporation (NRUCFC): National Rural Utilities Prices $500 Million of Collateral T

^{Published on 2009-09-10 15:14:37 - Market Wire}
 

HERNDON, VA--(Marketwire - September 10, 2009) - [ National Rural Utilities Cooperative Finance Corporation ] (National Rural) (NYSE: [ NRU ]) (NYSE: [ NRN ]) (NYSE: [ NRC ]) announced today that it has priced an underwritten public offering of a total of $500 million in Collateral Trust Bonds (CTB): $250 million, 2.625% Collateral Trust Bonds due 2012; and $250 million, 3.875% Collateral Trust Bonds due 2015.

The three-year bonds priced at a spread of 125 basis points over the yield on the three-year benchmark U.S. Treasury and the six-year bonds priced at a spread of 158 basis points over the yield on the five-year benchmark U.S. Treasury.

[ National Rural ] expects to close the sale of the bonds on September 16, 2009, subject to customary closing conditions. The net proceeds from the offering will be used for general corporate purposes, including the repayment of short-term debt, primarily commercial paper.

Deutsche Bank Securities Inc., RBS Securities Inc., UBS Securities LLC, Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., and Scotia Capital (USA) Inc. are acting as joint lead book-running managers. The senior co-managers are KeyBanc Capital Markets Inc. and U.S. Bancorp Investments, Inc. The co-managers are Comerica Securities, Inc. and PNC Capital Markets, LLC.

National Rural has filed a registration statement (including a prospectus) and a prospectus supplement with the SEC relating to the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the prospectus supplement and other documents that National Rural has filed with the SEC for more complete information about National Rural and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at [ www.sec.gov ]. Alternatively, a copy of the prospectus supplement relating to the bonds can be obtained from UBS Securities LLC by calling toll-free at 1-877-827-6444, ext. 561-3884; Deutsche Bank Securities Inc. by calling toll-free at 1-800-503-4611; or RBS Securities Inc. by calling toll-free at 1-866-884-2071.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

National Rural is a cooperative that serves the nation's [ rural utility systems ], the majority of which are [ electric cooperatives ]. With $20 billion in assets, National Rural provides its member-owners with an assured source of market-priced capital and financial products and services.