Filed Pursuant to Rule 433 under the Securities Act
Registration Statement no. 333-213558
Issuer Free Writing Prospectus dated January 31, 2018
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORPORATION
COLLATERAL TRUST BOND TERM SHEET
Issuer: | National Rural Utilities Cooperative Finance Corporation | |
Expected Ratings: | A1 (Stable) / A (Stable) / A+ (Stable) (Moody's / S&P / Fitch) | |
Principal Amount: | $700,000,000 | |
Security Type: | Collateral Trust Bonds | |
Legal Format: | SEC Registered | |
Pricing Date: | January 31, 2018 | |
Settlement Date: | February 7, 2018 (T+5) | |
Maturity Date: | February 7, 2028 | |
Coupon: | 3.40% | |
Price to Public: | 99.706% | |
Benchmark Treasury: | 2.25% due November 15, 2027 | |
Benchmark Treasury Yield: | 2.735% | |
Spread to Benchmark Treasury: | +70 basis points | |
Yield to Maturity: | 3.435% | |
Interest Payment Dates: | Semi-annually on February 7 and August 7, commencing August 7, 2018 | |
Optional Redemption: | The issuer may redeem the bonds at any time, prior to November 7, 2027, in whole or in part, at a “make-whole” redemption price equal to the greater of (1) 100% of the principal amount being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest (other than accrued interest) on the bonds being redeemed that would be due if such bonds matured on November 7, 2027, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 15 basis points for the bonds plus in each case of (1) and (2) above, accrued interest to, but excluding, the redemption date. At any time on or after November 7, 2027, the issuer may redeem the bonds at its option, in whole or in part, at a redemption price equal to 100% of the principal amount of the bonds then outstanding to be redeemed, plus accrued and unpaid interest on the bonds being redeemed to, but excluding, the redemption date. | |
Denominations: | $2,000 x $1,000 | |
CUSIP / ISIN: | 637432 NP6 / US637432NP60 | |
Joint Book-Running Managers: | J.P. Morgan Securities LLC | |
KeyBanc Capital Markets Inc. | ||
Mizuho Securities USA LLC | ||
PNC Capital Markets LLC | ||
SunTrust Robinson Humphrey, Inc. | ||
Co-Managers: | MUFG Securities Americas Inc. | |
RBC Capital Markets, LLC | ||
Regions Securities LLC | ||
Scotia Capital (USA) Inc. | ||
U.S. Bancorp Investments, Inc. |
The following sentence has been added to last sentence of the eighth paragraph under the caption “Underwriting” in the Preliminary Prospectus Supplement dated January 31, 2018:
“The trustee is an affiliate of U.S. Bancorp Investments, Inc., one of the underwriters.”
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for this offering. Before you invest, you should read the prospectus for this offering in that registration statement, and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by searching the SEC online database (EDGAR®) at www.sec.gov. Alternatively, you may obtain a copy of the prospectus from J.P. Morgan Securities LLC by calling collect at 1-212-834-4533, KeyBanc Capital Markets Inc. by calling toll-free at 1-866-277-6479, Mizuho Securities USA LLC by calling toll-free at 1-866-271-7403, PNC Capital Markets LLC by calling toll-free at 1-855-881-0697 or SunTrust Robinson Humphrey, Inc. by calling toll-free at 1-800-685-4786.