WALL STREET – NCUA yesterday said it is offering $1.5 billion of three-year notes guaranteed by its Temporary Corporate CU Liquidity Guarantee Program to finance the activities of WesCorp FCU, the California corporate giant it has been operating under conservatorship since March 20.
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Rates are to be determined for the offering, which will provide liquidity for the one-time $32 billion corporate to hold on to troubled mortgage-backed securities while the market recovers.
The notes carried a 1.75% rate to maturity and were priced to yield 1.793%. They carried a Triple A rating because of the NCUA guarantee.
The offering is underwritten by JP Morgan Chase and Bank of America.
