CFC (NRUC) plans $350M redemption of 5.25% subordinated notes due 2046

Rhea-AI Filing Summary

National Rural Utilities Cooperative Finance Corporation plans to redeem all $350 million of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2046. The notes will be redeemed on April 20, 2026 at par plus accrued interest and will be paid using cash on hand.

The company states that this redemption is being undertaken to reduce interest expense, meaning it will eliminate future coupon payments on these higher-cost subordinated notes.

Insights

Corporate credit and capital structure analyst

CFC is retiring $350M of subordinated debt to cut interest costs.

CFC is redeeming $350 million of 5.25% Fixed-to-Floating Rate Subordinated Notes due 2046 at par plus accrued interest, funded entirely with cash on hand. This removes a relatively expensive layer of long-dated subordinated debt from its capital structure.

The company explicitly states the move is intended to reduce interest expense, so ongoing funding costs should decline compared with leaving the notes outstanding. The impact on overall leverage, liquidity, and future funding plans would depend on CFC’s broader balance sheet, which is not detailed in this excerpt.

The redemption date of April 20, 2026 marks when principal and accrued interest will be repaid. Subsequent regulatory filings and financial statements after that date can show how interest expense and debt composition change following this transaction.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________

FORM 8-K

__________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 20, 2026

__________________________

NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION

(Exact name of registrant as specified in its charter)

District of Columbia			1-7102			52-0891669
(State or other jurisdiction of incorporation)			(Commission File Number)			(I.R.S. Employer Identification No.)

20701 Cooperative Way,			Dulles,			VA			20166-6691
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code:  (703) 467-1800

(Former name or former address, if changed since last report)

__________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
7.35% Collateral Trust Bonds, due 2026			NRUC 26			New York Stock Exchange
5.50% Subordinated Notes, due 2064			NRUC			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01     Other Events.

On March 20, 2026, notice was provided to investors that National Rural Utilities Cooperative Finance Corporation (“CFC”) will redeem all $350 million of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2046 (the “Notes”) on April 20, 2026. The Notes are identified by CUSIP number 637432NK7. The Notes will be redeemed at par plus accrued interest. The redemption is being effected to reduce interest expense. The principal and accrued interest at the redemption date will be paid with cash on hand.

Certain comments made in this Form 8-K are forward-looking. Such statements are based on certain assumptions regarding future business and financial performance, describe our future plans, strategies and expectations are generally identified by our use of words such as “intend,” “plan,” “may,” “should,” “will,” “expects” and similar expressions. Although we believe that the expectations reflected in such statements are based on reasonable assumptions, actual results and performance could materially differ. Information regarding the factors which could cause actual results to materially differ is included in our annual and quarterly reports previously filed with the SEC. Except as required by law, we undertake no obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date on which the statement is made.

Item 9.01 Financial Statements and Exhibits.

(d)     The following exhibit is filed as part of this report:

Exhibit No.						Description
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NATIONAL RURAL UTILITIES			COOPERATIVE
FINANCE CORPORATION

By:			/s/ YU LING WANG
			Yu Ling Wang
			Senior Vice President and Chief Financial Officer

Dated:  March 20, 2026

FAQ

What debt is National Rural Utilities CFC (NRUC) redeeming?

National Rural Utilities CFC is redeeming all $350 million of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2046. These notes, identified by CUSIP 637432NK7, will be taken out of circulation and fully repaid to investors.

When will NRUC redeem its 5.25% subordinated notes?

NRUC plans to redeem the 5.25% Fixed-to-Floating Rate Subordinated Notes on April 20, 2026. On that date, investors will receive repayment of principal plus accrued interest according to the terms described in the company’s disclosure.

At what price will NRUC redeem the 5.25% subordinated notes?

The 5.25% Fixed-to-Floating Rate Subordinated Notes will be redeemed at par plus accrued interest. This means holders receive the full face value of their notes, along with interest earned up to the April 20, 2026 redemption date.

How will NRUC fund the redemption of its $350 million subordinated notes?

NRUC states that principal and accrued interest on the redemption date will be paid with cash on hand. Using internal cash rather than new borrowing suggests the company currently has sufficient liquidity to complete the $350 million repayment.

Why is NRUC redeeming its 5.25% subordinated notes due 2046?

NRUC explains that the redemption is being effected to reduce interest expense. By repaying the 5.25% Fixed-to-Floating Rate Subordinated Notes early, the company eliminates future coupon payments on this long-dated, higher-cost debt.

Which NRUC notes being redeemed are linked to the NRUC trading symbol?

The filing highlights 5.25% Fixed-to-Floating Rate Subordinated Notes due 2046 with CUSIP 637432NK7. Separately, NRUC has exchange-listed 5.50% Subordinated Notes due 2064 trading under the symbol NRUC on the New York Stock Exchange.

Filing Exhibits & Attachments

4 documents

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 3.1 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT 8.1 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 29.0 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 18.5 KB