CoBank Announces Final Results And Definitive Prices For Its Debt Tender Offer

CoBank Announces Final Results And Definitive Prices For Its Debt Tender Offer

PR Newswire

DENVER, Dec. 13, 2012

DENVER, Dec. 13, 2012 /PRNewswire/ --CoBank, a cooperative bank serving
agribusinesses, rural infrastructure providers and Farm Credit System
associations throughout the United States, today announced the final results
and definitive prices for its previously announced modified "Dutch Auction"
cash tender offer (the "Offer") for up to $150 million aggregate principal
amount (the "Tender Cap") of its 7.875% Subordinated Notes due 2018 (the
"Subordinated Notes").

The purpose of the Offer is to retire a portion of CoBank's outstanding public
debt and, in so doing, reduce the overall level and cost of its indebtedness.

Pursuant to the terms of the Offer, the Offer expired at 11:59 p.m., New York
City time, on December 12, 2012 (the "Expiration Date"). As of the Expiration
Date, CoBank received tenders for $95,315,000 aggregate principal amount of
the Subordinated Notes. All such Subordinated Notes have been accepted for
purchase pursuant to the terms of the Offer. Payment for Subordinated Notes
tendered and accepted for purchase is expected to be made today.

Based on the terms of the Offer, CoBank determined the clearing spread,
reference yield, tender yield, Total Consideration and Tender Offer
Consideration as follows:

                       Principal   Principal                           Total
Title of     CUSIP     Amount      Amount    Clearing Reference Tender Consideration Tender Offer
Security     Number    Outstanding Accepted  Spread   Yield     Yield                Consideration
                       (MM)        (MM)                                (1)
Subordinated 19075QAB8 $500.0      $95.315   140      0.629     2.029  1,294.49      1,264.49
Notes due
(1) Per $1,000 principal amount of Subordinated Notes validly tendered at or prior to the Early
Tender Date and accepted for purchase.

In addition, holders whose Subordinated Notes are accepted for purchase will
receive a cash payment representing the accrued and unpaid interest on those
Subordinated Notes from the last interest payment date to, but not including,
the payment date for Subordinated Notes purchased in the Offer.

CoBank has retained Morgan Stanley & Co. LLC to act as Dealer Manager for the
Offer. Global Bondholder Services Corporation has been retained to act as both
the Depositary for the Offer and as the Information Agent for the Offer. For
additional information regarding the terms of the Offer, please contact:
Morgan Stanley & Co. LLC at (800) 624-1808 (toll-free) or (212) 761-1057
(collect). Requests for documents and questions regarding the tendering of
Subordinated Notes may be directed to Global Bondholder Services Corporation
at (212) 430-3774 (for banks and brokers only) or (866) 540-1500 (for all
others toll-free).

This press release does not constitute an offer to sell or purchase, or a
solicitation of an offer to sell or purchase, or the solicitation of tenders
or consents with respect to, the Subordinated Notes. No offer, solicitation,
purchase or sale will be made in any jurisdiction in which such an offer,
solicitation, or sale would be unlawful. The Offer is being made solely
pursuant to the Offer to Purchase for Cash dated November 14, 2012 and the
related Letter of Transmittal made available to holders of the Subordinated

About CoBank

CoBank is a $90 billion cooperative bank serving vital industries across rural
America.The bank provides loans, leases, export financing and other financial
services toagribusinesses 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 70,000
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


Certain of the statements in this press release that are not historical facts
are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. Our actual results may differ materially from those
included in the forward-looking statements that relate to our plans,
projections, expectations and intentions. Forward-looking statements are
typically identified by words such as "believe," "expect," "anticipate,"
"intend," "estimate," "plan," "project," "may," "will," "should," "would,"
"could" or similar expressions. Although we believe that the information
expressed or implied in such forward-looking statements is reasonable, we can
give no assurance that such projections and expectations will be realized or
the extent to which a particular plan, projection or expectation may be
realized. These forward-looking statements are based on current knowledge and
are subject to various risks and uncertainties, including, but not limited to:

  oPotential deterioration in the agricultural, energy, communications, water
    and leasing industries;
  oWeather-related, disease and other adverse climatic or biological
    conditions that periodically occur that impact agricultural productivity
    and income, including the impact of drought in many parts of the United
    States which may negatively affect certain customer sectors;
  oCredit performance of the loan portfolio;
  oLoan portfolio growth and seasonal factors;
  oWeak U.S. and global economic conditions;
  oGovernment policies and developments in the United States and other
    countries in which we make loans;
  oThe European sovereign debt crisis and its potential impact on funding
  oLegislative actions and the effect of banking and financial services
  oRegulatory actions, including possible amendments to, and interpretations
    of, risk-based capital guidelines;
  oChanges in the U.S. government's support of the agriculture industry and
    agricultural exports;
  oActions taken by the U.S. Congress relative to Government Sponsored
    Enterprises, including the Federal National Mortgage Association, the
    Federal Home Loan Mortgage Corporation and the Federal Agricultural
    Mortgage Corporation;
  oActions taken by the U.S. government to manage fiscal policy;
  oActions taken by the Federal Reserve to manage the monetary policy of the
    United States;
  oA decrease in the credit outlook or ratings of U.S. government debt and
    agency debt, including Farm Credit System debt securities;
  oThe level of interest rates;
  oRelationships between various interest rate indices;
  oChanges in assumptions underlying the valuations of financial instruments;
  oChanges in the bases for our estimates underlying the allowance for credit
  oFailure of our investment portfolio to perform as expected or
    deterioration in the credit quality of such investments;
  oThe resolution of legal proceedings and related matters;
  oEnvironmental-related conditions or laws impacting our lending activities;
  oNonperformance by counterparties to our derivative positions; and
  oOur ability to successfully execute and integrate any future business
    combinations or strategic alliances.

We expressly disclaim any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law.

For additional information on CoBank and the factors that could cause CoBank's
actual results or financial condition to differ materially from those
described in the forward-looking statements consult CoBank's Annual Report for
the year ended December 31, 2011 and its Quarterly Report for the quarter
ended September 30, 2012. Forward-looking statements are not guarantees of
future performance and should not be relied upon as representing management's
views as of any subsequent date. We do not assume any obligation to update
these forward-looking statements.


Contact: Arthur Hodges, Senior Vice President, Corporate Communications,
+1-303-740-4061,, or Dan Haley, Director of Corporate
Communications, +1-303-793-2239,
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