Hunton Andrews Kurth Advises on National Rural Utilities Cooperative Finance Corporation $100 Million Subordinated Notes Reopening

Hunton Andrews Kurth LLP advised the underwriter on an SEC-registered offering by National Rural Utilities Cooperative Finance Corporation (“CFC”) of $100 million aggregate principal amount of 7.125% Fixed-to-Fixed Reset Rate Subordinated Notes due 2053 (Subordinated Deferrable Interest Notes). The offering constituted a reopening of CFC’s subordinated notes originally issued on May 26, 2023.

CFC is a member-owned, nonprofit finance cooperative association. Its principal purpose is to provide its members and associates with financing to supplement the loan programs of the Rural Utilities Service of the United States Department of Agriculture. CFC extends loans to its rural electric members for construction, acquisitions, system and facility repairs and maintenance, enhancements and ongoing operations to support the goal of electric distribution and generation and transmission systems of providing reliable, affordable power to the customers they serve. CFC also provides its members and associates with credit enhancements in the form of letters of credit and guarantees of debt obligations. CFC funds its activities primarily through a combination of public and private issuances of debt securities, member investments and retained equity. As a Section 501(c)(4) tax-exempt, member-owned cooperative, CFC cannot issue equity securities.

The Hunton Andrews Kurth team included Michael F. Fitzpatrick, Adam R. O’Brian, Patrick C. Jamieson, Reuben H. Pearlman and Monika M. Dziewa. Robert McNamara, William Freeman and Caitlin A. Scipioni provided tax advice.