On May 18, 2021, the NCUA issued Letter to Credit Unions 21-CU-03 addressing LIBOR transition plans. Pursuant to this NCUA guidance, we are sending this notification to convey the LIBOR transition plan for Catalyst Corporate Federal Credit Union’s (Catalyst Corporate) Perpetual Contributed Capital Units (PCC). The Financial Conduct Authority announced previously on July 27, 2017 that it will no longer persuade or compel banks to submit LIBOR rates for publication after 2021. In a subsequent November 30, 2020 announcement, publication was extended to June 30, 2023 on select US Dollar (USD) LIBOR Tenors, including the one-month term on which the PCC dividend is currently based.

Based on these announcements, it appears likely that the USD one-month LIBOR rate will be discontinued on June 30, 2023.

Under the terms of Catalyst Corporate’s Private Placement Memorandum, the dividend rate on PCC is currently based on USD one-month LIBOR. Between now and such time that Catalyst Corporate can no longer determine USD one-month LIBOR using screen-based reporting of the base rate, Catalyst Corporate’s Board of Directors will use its discretion to select a reference rate that it determines as the most comparable to the USD one-month LIBOR. Using it discretion, Catalyst Corporate may also implement changes to the business day convention, the definition of business day and the dividend determination date to be used, and any other relevant methodology for calculating a comparable successor base rate with respect to the calculation of dividends on PCC.

It is not possible to predict the effect these prior announcements, or any future discontinuance announcements will have on the USD one-month LIBOR rate. Catalyst Corporate will continue to monitor the situation and plan for the LIBOR transition, including the evaluation of potential alternative reference rates during this interim period.

Notification of the selected alternative index and PCC calculation methodology will be communicated 90 days in advance of the discontinuation of the publication of USD one-month LIBOR and the transition to the successor reference rate.

Please feel free to call or email Mike McGinnis with any questions you may have at 214.703.7850.

Sincerely,
Board of Directors