The National Credit Union Administration is in the market with NCUA Guaranteed Notes Trust 2011-R6.
The transaction's proceeds of will be used to buy a static portfolio of private-label RMBS totaling $3.06 billion. The RMBS were previously owned by five separate corporate credit unions that have been under NCUA conservatorship since March 2009.
The transaction comprises a series comprising a class of senior notes and a class of owner trust certificates.
The senior notes, worth $965 million, will accrue interest at a rate of one-month Libor plus a spread and is subject to a maximum rate of 7.5% per annum. The owner trust certificates, worth $2.01 billion, will initially be retained by NCUA. according to a presale report from Fitch Ratings.
The rating agency expects to assign an ‘AAAsf’ rating to the senior notes to be issued by NCUA.
