ALEXANDRIA, Va. (11/12/10)--The National Credit Union Administration (NCUA) has set pricing guidance for an additional $5.5 billion of its NCUA Guaranteed Notes, Bloomberg News has reported. Citing an anonymous source, Bloomberg reported that “the largest, $2.86 billion-portion of the debt with a projected average life of 5.77 years may yield about 45 basis points more than the one-month London interbank offered rate.” The NCUA late last month settled the initial offering of its Senior Series I-A NGNs, which were comprised of $3.28 billion of assets and were mainly backed by senior floating rate securities. Those notes also paid a floating-rate coupon of one-month LIBOR plus .45% per annum, subject to a maximum note interest rate cap equal to 7.00% annually. The NCUA also settled its Senior Series II-A NGNs last month. Those notes are comprised of $566.5 million in assets, are mainly backed by fixed-rate pass-through securities, and will pay a fixed-rate coupon of 1.84% annually, according to the NCUA. Credit unions received nearly 10% of the total allocation for both the I-A and II-A notes, the NCUA said. The NCUA is offering $35 billion of the NGNs, which are fully backed by the federal government, on the open market. The NGNs are backed by portions of private label, residential mortgage-backed securities that were held by several now-conserved corporate credit unions.