Long-Term Debt

12 Months Ended

May 31, 2024


NOTE 7—LONG-TERM DEBT

The following table displays, by debt product type, long-term debt outstanding, and the weighted-average interest rates and the maturity date as of May 31, 2024 and 2023. Long-term debt outstanding totaled $25,901 million and accounted for 79% of total debt outstanding as of May 31, 2024, compared with $23,947 million and 77% of total debt outstanding as of May 31, 2023. Long-term debt with fixed- and variable-interest rates accounted for 93% and 7%, respectively, of our total long-term debt outstanding as of both May 31, 2024 and May 31, 2023.

Table 7.1: Long-Term Debt—Debt Product Types and Weighted-Average Interest Rates


	May 31,
	2024					2023
(Dollars in thousands)	Amount		Weighted- Average Interest Rate		Maturity (1)	Amount		Weighted- Average Interest Rate		Maturity (1)
Secured long-term debt:
Collateral trust bonds	$	6,937,711	3.49	%	2025-2049	$	7,792,711	3.46	%	2023-2049
Unamortized discount, net	(166,458)					(178,832)
Debt issuance costs	(31,332)					(35,906)
Total collateral trust bonds	6,739,921					7,577,973
Guaranteed Underwriter Program notes payable	6,491,814		3.27		2025-2053	6,720,643		3.09		2025-2053
Farmer Mac notes payable	3,363,510		4.11		2025-2049	3,149,898		3.92		2023-2049
Other secured notes payable	—		—			1,098		3.06		2023
Debt issuance costs	—					(2)
Total other secured notes payable	—					1,096
Total secured notes payable	9,855,324					9,871,637
Total secured long-term debt	16,595,245		3.53			17,449,610		3.40
Unsecured long-term debt:
Medium-term notes sold through dealers	8,980,513		4.38		2024-2037	6,152,726		3.52		2023-2037
Medium-term notes sold to members	358,844		4.80		2024-2037	365,260		3.98		2023-2037
Medium-term notes sold through dealers and to members	9,339,357		4.39			6,517,986		3.55
Unamortized premium (discount), net	(2,209)					4
Debt issuance costs	(31,228)					(21,122)
Total unsecured medium-term notes	9,305,920					6,496,868
Unsecured notes payable	—		—			71		—		2023
Unamortized discount	—					(1)


Total unsecured notes payable	—					70
Total unsecured long-term debt	9,305,920		4.39			6,496,938		3.55
Total long-term debt	$	25,901,165	3.84			$	23,946,548	3.44

___________________________

(1) Maturity is presented based on calendar year.

The following table presents the principal amount of long-term debt maturing in each of the five fiscal years subsequent to May 31, 2024 and thereafter.

Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates


(Dollars in thousands)	Maturity Amount		Weighted-Average Interest Rate
2025	$	2,670,143	3.31	%
2026	3,316,357		3.93
2027	3,418,663		3.78
2028	2,166,030		3.75
2029	2,749,246		4.07
Thereafter	11,811,953		3.92
Total	$	26,132,392	3.84

Secured Debt

Long-term secured debt of $16,595 million and $17,450 million as of May 31, 2024 and 2023, respectively, represented 64% and 73% of total long-term debt outstanding as of each respective date. We were in compliance with all covenants and conditions under our secured debt indentures as of May 31, 2024 and 2023. We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. See “Note 4—Loans” for information on pledged collateral under our secured debt agreements.

Collateral Trust Bonds

Collateral trust bonds represent secured obligations sold to investors in the capital markets. Collateral trust bonds are secured by the pledge of mortgage notes or eligible securities in an amount at least equal to the principal balance of the bonds outstanding. We repaid $855 million of collateral trust bonds that matured during FY2024.

Guaranteed Underwriter Program Notes Payable

We borrowed $275 million and repaid $504 million of notes payable outstanding under the Guaranteed Underwriter Program during FY2024. We had up to $1,200 million available for access under the Guaranteed Underwriter Program as of May 31, 2024.

On December 19, 2023, we closed on a $450 million Series U committed loan facility from the U.S. Treasury Department’s Federal Financing Bank under the Guaranteed Underwriter Program. Pursuant to this facility, we may borrow any time before July 15, 2028. Each advance is subject to quarterly amortization and a final maturity not longer than 30 years from the date of the advance.

The notes outstanding under the Guaranteed Underwriter Program contain a provision that if during any portion of the fiscal year, our senior secured credit ratings do not have at least two of the following ratings: (i) A3 or higher from Moody’s, (ii) A- or higher from S&P, (iii) A- or higher from Fitch or (iv) an equivalent rating from a successor rating agency to any of the above rating agencies, we may not make cash patronage capital distributions in excess of 5% of total patronage capital. We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Guaranteed Underwriter Program.

Farmer Mac Notes Payable

We have a revolving note purchase agreement with Farmer Mac, under which we can borrow up to $6,000 million from Farmer Mac, at any time, subject to market conditions through June 30, 2027. The agreement has successive automatic one-year renewals beginning June 30, 2026, unless Farmer Mac provides 425 days’ written notice of nonrenewal. Pursuant to this revolving note purchase agreement, we can borrow, repay and re-borrow funds at any time through maturity, as market conditions permit, provided that the outstanding principal amount at any time does not exceed the total available under the agreement. Each borrowing under the revolving note purchase agreement is evidenced by a pricing agreement setting forth the interest rate, maturity date and other related terms as we may negotiate with Farmer Mac at the time of each such borrowing. We may select a fixed rate or variable rate at the time of each advance with a maturity as determined in the applicable pricing agreement. We borrowed a total of $300 million in principal amount of long-term notes payable under the Farmer Mac note purchase agreement during FY2024. The amount outstanding under this agreement included $500 million of short-term borrowings and $3,364 million of long-term debt as of May 31, 2024. The amount available for borrowing totaled $2,136 million as of May 31, 2024. We are required to pledge eligible electric distribution system or electric power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under this agreement. Subsequent to the fiscal year ended May 31, 2024, we borrowed $200 million in long-term notes payable under the Farmer Mac note purchase agreement.

Unsecured Debt

Long-term unsecured debt of $9,306 million and $6,497 million as of May 31, 2024 and 2023, respectively, represented 36% and 27% of total long-term debt outstanding as of each respective date.

Medium-Term Notes

Medium-term notes represent unsecured obligations that may be issued through dealers in the capital markets or directly to our members. During FY2024, we issued an aggregate principal amount of dealer medium-term notes totaling $3,150 million with an average fixed interest rate of 5.05% and an average term of four years, and an aggregate principal amount of dealer medium-term notes totaling $600 million with floating interest rates and an average term of two years. We repaid $959 million in principal amount of dealer medium-term notes that matured during FY2024.