Mid-States' PIC Offering Hits $69 Million
WARRENVILLE, Ill. - Corporates lobbied NCUA to grandfather in and extend the time period to be able to offer Paid in Capital and they are taking advantage of it. The $4.5 billion Mid-States Corporate FCU's PIC offering reached $69 million. More than $16 million in new capital was generated and 124 member CUs participated. Paid-in Capital accounts have higher yields and longer maturities than traditional membership shares, which require a three-year notice to redeem. Members could choose from an investment with a fixed rate for the initial five years, changing over to a floating rate or a fully floating-rate investment. At the date of the end of the subscription period, the fixed offering held a rate of 3.26%, 100 basis points over the five-year Treasury; and the variable-rate offering paid 1.81%, 70 basis points over the one-month LIBOR.