NCUA today announced that yesterday U.S. Central completed an offering of $4.0 billion in medium-term notes guaranteed by the NCUA's Temporary Corporate Credit Union Liquidity Guarantee Program.

The agency had alluded to this possibility during its Washington and San Diego town hall meetings. Many of the corporates have issued debt in the form of commercial paper; U.S. Central and WesCorp have also issued medium-term notes previously, according to the NCUA.

The purpose of the medium-term note issuance secures another source of funding to ensure bonds can be held to recovery, the NCUA stated. It added that the offering will also enhance stability since much of the current corporate funding is short-term.

The issuance was completed on Wednesday 10/14 for a total of $4 billion. It is a combination of a two-year floater ($500 million at three-month LIBOR + 0); two-year fixed ($1.5 billion at swaps + 0); and three-year fixed ($2 billion at swaps + 5). All have a trade date of 10/14/09 and a settlement date of 10/19/09.

J.P. Morgan and BofA Merrill Lynch served as lead underwriters for the issuance.