Short-Term Debt and Credit Arrangements (Tables)

9 Months Ended

Feb. 28, 2014

Short-Term Debt and Credit Arrangements

Schedule of Debt

The following is a summary of short-term debt outstanding:

(Dollars in thousands)	February 28,  2014		May 31,  2013
Short-term debt:
Commercial paper sold through dealers, net of discounts (1)	$	2,611,744	$	2,009,884
Commercial paper sold directly to members, at par (1)		916,675		812,141
Commercial paper sold directly to non-members, at par (1)		20,160		39,298
Select notes		496,031		358,390
Daily liquidity fund notes sold directly to members		590,724		680,419
Bank bid notes		150,000		150,000
Subtotal short-term debt		4,785,334		4,050,132
Long-term debt maturing within one year:
Medium-term notes sold through dealers		270,282		989,607
Medium-term notes sold to members		365,845		391,318
Secured collateral trust bonds		854,605		1,504,949
Loan and guarantees subordinated certificates		53,370		37,176
Member capital securities		181,480		-
Secured notes payable		27,174		742,402
Unsecured notes payable		3,897		3,899
Total long-term debt maturing within one year		1,756,653		3,669,351
Total short-term debt	$	6,541,987	$	7,719,483

(1) Backup liquidity is provided by our revolving credit agreements.

Schedule of Line of Credit Facilities

The following table presents the total available and the outstanding letters of credit under our revolving credit agreements:

	Total Available				Letters of Credit Outstanding
(Dollars in thousands)	February 28, 2014		May 31, 2013		February 28, 2014		May 31, 2013		Maturity	Facility Fee Per Year (1)
Three-year agreement	$	219,000	$	219,000	$	-	$	-	March 21, 2014	15 basis points
Three-year agreement		1,036,000		916,000		-		-	October 28, 2016	10 basis points
Four-year agreement		1,122,500		1,007,500		-		-	October 28, 2017	10 basis points
Five-year agreement		1,065,609		954,012		1,891		3,488	October 28, 2018	10 basis points
Total		3,443,109	$	3,096,512	$	1,891	$	3,488

(1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement.

Schedule of Line of Credit Facility Covenants

The following represents our required and actual financial ratios under the revolving credit agreements:

		Actual
	Requirement		February 28, 2014	May 31, 2013
Minimum average adjusted TIER over the six most recent fiscal quarters (1)	1.025		1.28	1.27
Minimum adjusted TIER for the most recent fiscal year (1) (2)	1.05		1.29	1.29
Maximum ratio of adjusted senior debt to total equity (1)	10.00		5.92	5.85

(1) In addition to the adjustments made to the leverage ratio set forth in the Non-GAAP Financial Measures section, senior debt excludes guarantees to member systems that have certain investment-grade ratings from Moody’s Investors Service and Standard & Poor’s Corporation. The TIER and debt-to-equity calculations include the adjustments set forth in the Non-GAAP Financial Measures section and exclude the results of operations for CAH.

(2) We must meet this requirement to retire patronage capital.