Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
WesCorp sells 1.5 billion in three-year notes
NEW YORK and WASHINGTON (10/29/09)--Western Corporate (WesCorp) FCU Wednesday sold $1.5 billion in three-year government-guaranteed notes, according to IFR, a Thomson Reuters news service. The National Credit Union Administration Wednesday morning confirmed that the $18 billion asset, San Dimas, Calif.-based WesCorp was offering the notes guaranteed by NCUA under the Temporary Corporate Credit Union Liquidity Guarantee Program. J.P. Morgan and Bank of America were to serve as lead underwriters for the issuance, according to John J. McKechnie III, NCUA's director of public and congressional affairs, said Wednesday morning. The medium term notes (MTN) issuance secures another source of funding to ensure bonds can be held to recovery, McKechnie said in an e-mail to News Now staff. "Given that much of the current corporate funding is short-term, the MTN issuance will enhance stability," he said. "The issuance is part of a normal process to maintain a balanced asset/liability mix, McKechnie said. According to Reuters, the 1.75% notes were priced at 99.875 to yield 1.793%, or 35.9 basis points over comparable U.S. Treasuries. Earlier this month, U.S. Central FCU, Lenexa, Kan., completed a similar offering of $4 billion in MTN. That issuance was completed Oct. 14. Several corporate credit unions have issued debt in the form of commercial paper. Both U.S. Central and WesCorp had previously issued MTNs. In other developments, Corporate America CU, based in Birmingham, Ala., filed a lawsuit Oct. 20 in a U.S. District Court in Alabama alleging that U.S. Central forced it to buy $9 million in paid-in-capital shares in U.S. Central several weeks before NCUA required U.S. Central to write down its mortgage-backed securities by $1.2 billion and injected $1 billion into the corporate (Kansas City Star Oct. 26). Three months after Corporate America CU bought the securities, federal regulators placed U.S. Central into conservatorship.


RSS





print
News Now LiveWire
Matz: Revised @TheNCUA #RBC rule for #creditunions 2 B unveiled 1/15/15, 90-day comment period to follow #newsnow http://t.co/qABhvghSTU
13 hours ago
Just announced: @TheNCUA board will consider a revised risk-based capital rule at its Jan 15 mtg. See #NewsNow Monday for more info.
15 hours ago
Nearing one-yr anniversary of data breach, @Target asks for class action suits to be dismissed via @BloombergNews http://t.co/kra6kupd35
16 hours ago
.@PeoplesTrustFCU has been recognized with the Juntos Avanzamos designation by @Cornerstone_CUL for its service to the Hispanic community
17 hours ago
#NewsNow: Rep. Hensarling names #HFSC subcommittee chairs. http://t.co/dXAMZdpn1p
17 hours ago