NCUA Completes First Structured Notes Transaction


The National Credit Union Administration (NCUA) has settled its initial offering of NCUA guaranteed notes – NGN 2010-R1 – backed by an unconditional NCUA guaranty for timely payment of principal and interest. As a part of the corporate resolution plan, the transaction, which closed Wednesday, featured two series of senior notes, each backed by a separate pool of residential mortgage-backed securities.

The first series – Senior Series I-A – contains $3.28 billion of notes that are backed primarily by senior floating-rate securities. The second series – Senior Series II-A – includes $566.5 million of notes backed primarily by fixed-rate pass-through securities.

The transaction was oversubscribed, NCUA says, with more than 35 investors participating.

Barclays Capital served as the sole structuring agent and financial adviser to NCUA on the structured sale.


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