Hunton & Williams Advises on Debt-for-Debt Exchange

Lawyers in Hunton & Williams LLP's power and energy capital markets group recently advised the dealer manager, J.P. Morgan Securities LLC, in a debt-for-debt exchange conducted as a modified “Dutch auction”. The exchange offer by National Rural Utilities Cooperative Finance Corporation (“CFC”) was ultimately for $209,401,000 aggregate principal amount of CFC’s 8.00 percent Medium Term Notes, Series C, due 2032 for newly issued 4.023% Collateral Trust Bonds due 2032 and cash.

CFC is a member-owned cooperative association. Its principal purpose is to provide members with financing to supplement the loan programs of the Rural Utilities Service of the United States Department of Agriculture. CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution, generation, transmission and related facilities. CFC funds its activities primarily through a combination of publicly and privately held debt securities and member investments.

The Hunton & Williams legal team was led by partners Michael F. Fitzpatrick Jr. and Steven C. Friend, of the firm’s New York office. Cary Tolley, in the firm’s Miami office, provided tax advice. Associates Adam O’Brian and Emily Winbigler also assisted on the transaction.