| | | Proceeds of issuance will be used to redeem its Series H preferred stock in January 2025
DENVER (November 25, 2024) — CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced today that it has issued $300 million of preferred stock in a transaction exempt from registration under the Securities Act of 1933, as amended.
The new Fixed-Rate Reset Series M Non-Cumulative Perpetual Preferred Stock (“Series M Preferred Stock”) has a fixed dividend rate of 7.125% percent until January 1, 2030, after which the dividend rate will reset every five years to a rate equal to the five-year U.S. Treasury rate plus a spread of 2.818 percent. J.P. Morgan and Morgan Stanley served as joint bookrunners on the Series M Preferred Stock transaction. Barclays and Truist Securities served as co-managers. The proceeds from this issuance will be used to redeem all of its issued and outstanding shares of Fixed-to-Floating Rate Series H Non-Cumulative Perpetual Preferred Stock, Par Value $100 Per Share (“Series H Preferred Stock”) on January 1, 2025. |
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