Truliant Issues $50 Million in Secondary Capital
WINSTON-SALEM, N.C. (December 10, 2021) – Truliant Federal Credit Union, (“Truliant”), a low-income designated financial institution, today announced that it has successfully completed the private placement of $50 million in secondary capital. The National Credit Union Administration approved Truliant’s use of secondary capital to promote institutional growth and to meet the future needs of communities it serves.
This is the first time that Truliant has issued secondary capital. Truliant believes it is the largest single issuance of secondary capital by a credit union, and the first time one has received an investment grade rating. It intends to use the secondary capital to boost and expand loan portfolios, assets and services in target and existing major markets.
“Secondary capital is a valuable tool that allows growing credit unions like Truliant to continue extending quality financial services to member-owners and underserved communities,” said Todd Hall, Truliant’s President and CEO, “It is an effective way to maintain our desired capital buffer without sidelining the needs of our membership.”
Secondary Capital Financial Details
The secondary capital was issued in the form of 10-year unsecured subordinated notes that will mature on November 30, 2031 and will bear interest at a fixed annual rate of 3.625%, payable semi-annually in arrears. Kroll Bond Rating Agency assigned investment grade ratings for Truliant’s senior unsecured debt, subordinated debt, and short-term debt. The outlook for all ratings is stable. Truliant currently has a capital classification of “well capitalized.”
Beginning on November 23, 2026, Truliant may, subject to the receipt of any requisite regulatory approvals, make annual principal payments equal to 20% of the $50 million aggregate principal amount. Truliant may also pre-pay the subordinated notes in whole or in part upon the occurrence of certain other specified events.
Stifel, Nicolaus & Company, Incorporated served as the placement agent for the offering. Hunton Andrews Kurth LLP served as legal counsel to Truliant and Squire Patton Boggs (US) LLP served as legal counsel to the placement agent.
This is the first time that Truliant has issued secondary capital. Truliant believes it is the largest single issuance of secondary capital by a credit union, and the first time one has received an investment grade rating. It intends to use the secondary capital to boost and expand loan portfolios, assets and services in target and existing major markets.
“Secondary capital is a valuable tool that allows growing credit unions like Truliant to continue extending quality financial services to member-owners and underserved communities,” said Todd Hall, Truliant’s President and CEO, “It is an effective way to maintain our desired capital buffer without sidelining the needs of our membership.”
Secondary Capital Financial Details
The secondary capital was issued in the form of 10-year unsecured subordinated notes that will mature on November 30, 2031 and will bear interest at a fixed annual rate of 3.625%, payable semi-annually in arrears. Kroll Bond Rating Agency assigned investment grade ratings for Truliant’s senior unsecured debt, subordinated debt, and short-term debt. The outlook for all ratings is stable. Truliant currently has a capital classification of “well capitalized.”
Beginning on November 23, 2026, Truliant may, subject to the receipt of any requisite regulatory approvals, make annual principal payments equal to 20% of the $50 million aggregate principal amount. Truliant may also pre-pay the subordinated notes in whole or in part upon the occurrence of certain other specified events.
Stifel, Nicolaus & Company, Incorporated served as the placement agent for the offering. Hunton Andrews Kurth LLP served as legal counsel to Truliant and Squire Patton Boggs (US) LLP served as legal counsel to the placement agent.
About Truliant Federal Credit Union:
Truliant is a mission-driven, not-for-profit financial institution that promises to always have its member-owners’ best interest at heart. It improves lives by providing financial guidance and affordable financial services. Truliant was chartered in 1952 and now serves 280,000+ members. Truliant has more than 30 Member Financial Centers in North Carolina, South Carolina and Virginia.
FOR MORE INFORMATION
Contact: Heath Combs
[email protected]
(o) 336.293.2054 (c) 336.442.5736
