WINSTON-SALEM, N.C.––Truliant Federal Credit Union said 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,” according to the credit union.
In a statement, the $3.6-billion Truliant, which has a low-income designation, said this is the first time it has issued secondary capital and that it believes it is the largest single issuance of secondary capital by a credit union as well as the first to receive an investment grade rating.
Truliant said 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 President/CEO Todd Hall. “It is an effective way to maintain our desired capital buffer without sidelining the needs of our membership.”
The Details
Truliant said the secondary capital was issued in the form of 10-year unsecured subordinated notes that will mature on Nov. 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 credit union said, adding 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 said.
It added it may also pre-pay the subordinated notes in whole or in part upon the occurrence of certain other specified events.
Stifel, Nicolaus & Co., 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.
Truliant has more than 284,000 members.