National Rural ends fiscal Q2 with ‘adequate’ liquidity of $9 billion to fund debt maturities

By Lisa Kerner

Charlotte, N.C., Jan. 16 – National Rural Utilities Cooperative Finance Corp. (CFC) ended its fiscal 2015 second quarter with cash and cash equivalents of about $513 million and total debt of $21 billion.

These figures are up 51% and 2%, respectively, from the quarter ended Nov. 30, according to the earnings presentation.

“Our total long-term debt maturities over the next 12 months are very modest at $1.5 billion,” said senior vice president and treasurer Andrew Don during CFC’s earnings conference call on Friday.

Don said the company has adequate liquidity of $9 billion to meet CFC’s $6 billion of debt maturities.

At Nov. 30, CFC had cash and time deposits of about $1 billion, up to $874 million available under committed loan facilities from the Federal Financing Bank, $3.4 million available under committed revolving lines of credit with a syndicate of banks and, subject to market conditions, up to $2.4 million available under a revolving note purchase agreement with Farmer Mac.

CFC’s debt funding sources as a percentage breaks down as 53% from capital markets, 19% from member/owners, 20% from the Guaranteed Underwriter Program and 7% from Farmer Mac, according to presentation materials.

Earlier in the month, CFC’s Farmer Mac note purchase agreement was increased by $600 million to $4.5 billion, and the draw period was extended by four years to January 11, 2020, according to a form 10-Q filed with the Securities and Exchange Commission.

During fiscal 2015, CFC completed several major financing activities, including consolidating three credit facilities into two and increasing the total commitment by $196 million to $3.42 billion.

In June, CFC refinanced a maturing $95 million Farmer Mac note for seven years. The company issued an $80 million 30-year Farmer Mac note in October and a $200 million six-year Farmer Mac note in December.

CFC is a market lender for electric cooperatives based in Herndon, Va.

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