New york life funding agreement

HG bonds: NY Life Global adds to growing FA-backed issuance; terms

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HG bonds: NY Life Global adds to growing FA-backed issuance; terms

• Author Gayatri Iyer
• Theme Leveraged Finance & High YieldBankingInsurance

New York Life Global Funding today completed a $900 million offering of 0.85% five-year, funding agreement-backed notes due Jan. 15, 2026, at T+37, or 0.869%.

Of note, NY Global Funding's deal today is the eighth FA-backed transaction printed so far this year. Such notes are issued by special purposes statutory trusts and secured by funding agreement contract obligations issued by insurance companies. Issuers last week included Northwestern Mutual Global Funding and GA Global Funding Trust, two newly formed special purpose statutory trusts organized under the laws of Delaware.

NY Life Global Funding, a frequent issuer in this market, tapped the market five times in 2020. Most recently, in October, it completed an $800 million, two-part offering of notes due October 2023, including floating-rate notes and 0.40% fixed-rate notes at T+25, or 0.427%. In August 2020, it placed a $600 million offering of 1.20% 10-year FA-backed notes due August 2030 at T+70. Last June, it printed $500 million of 0.95% FA-backed notes due June 2025 at T+63, or 0.971%. In May 2020, it placed a $650 million offering of 1.10% three-year FA-backed notes due May 5, 2023, at T+87, or 1.107%. In January 2020, it completed a $650 million offering of 2% five-year FA-backed notes due January 2025 at T+45.

New York Life Global Funding operates as a subsidiary of New York Life Insurance Co. Proceeds of today's placement will be used to purchase relevant funding agreements from the parent.