DENVER, March 11, 2016 /PRNewswire/ -- CoBank, ACB ("CoBank"), a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, today announced that it will redeem all of the issued and outstanding principal amount of its 7.875% Subordinated Notes due 2018 ("Subordinated Notes") on April 15, 2016.
The terms of the Subordinated Notes provide that, at any time following the receipt by CoBank of a notification from the Farm Credit Administration ("FCA") of certain changes to CoBank's regulatory capital requirements, the Subordinated Notes are redeemable in whole on any interest payment date. On March 10, 2016, the FCA Board of Directors voted to approve changes to modify certain regulatory capital requirements for Farm Credit System banks, including CoBank.
The Subordinated Notes will be redeemed at a redemption price of 100% of the principal amount of the Subordinated Notes to be redeemed together with accrued and unpaid interest to, but excluding, the redemption date (less any applicable tax withholding as required by law). The redemption and paying agent for the redemption is The Bank of New York Mellon Trust Company, N.A. ("BoNY").
CoBank is a $117 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture and the nation's rural economy. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.
For more information about CoBank, visit the bank's web site at www.cobank.com.
SOURCE CoBank, ACB