National Rural Utilities Cooperative Finance, a provider of finance for electrical and telephone projects, has entered into a $1.5 billion 364-day agreement that expires on March 13, 2009, with a syndicate of 15 banks. The Bank of Nova Scotia was the administrative agent for the 364-day facility.
Any amount outstanding under the 364-day credit facility may be converted to a one-year term loan at maturity. National Rural Utilities Cooperative Finance’s (NRUCFC) five-year credit agreements totaling $1 billion dated March 22, 2006, and $1.1 billion dated March 16, 2007, are still in effect and expire on March 22, 2011 and March 16, 2012, respectively. The three facilities combined provide borrowing capacity of $3.6 billion.
All three of the credit agreements require NRUCFC to comply with maximum leverage and minimum times interest earned ratio covenants as defined in the agreements. NRUCFC said that it is in compliance with the covenants on all of the agreements. The company said that it has not borrowed under any of the three facilities.
The company has terminated the existing $1.1 billion 364-day revolving credit agreement which was scheduled to expire on March 14, 2008.