Dear Credit Union Associates:

As we approach the end of the one-month London Interbank Offered Rate (LIBOR), I am sending this communication to convey the LIBOR transition plan for Catalyst Corporate Federal Credit Union's Perpetual Contributed Capital Units (PCC) and to provide the associated Addendum to our Private Placement Memorandum.

The Financial Conduct Authority announced that publication of one-month LIBOR is to be discontinued on June 30, 2023. As Catalyst Corporate's PCC dividend is currently calculated based on one-month LIBOR, our Board of Directors has selected the 30-day compound average Secured Overnight Financing Rate (SOFR) as the index to replace LIBOR.

Following the guidance of the Federal Reserve Board's Adjustable Interest Rate (LIBOR) Act, the Board of Directors has approved calculating the dividends on PCC based on the 30-day compound average SOFR, as published by the Federal Reserve Bank of New York, plus a spread of 62 basis points. This spread represents the current 50 basis-point spread plus the prescribed static spread adjustment rounded up to 12 basis-points.

With LIBOR expected to end June 30, 2023, the change in dividend calculation is expected to begin July 1, 2023. The third quarter dividend, paid in October, will be based on the new SOFR calculation.

Please retain this addendum for your records and feel free to call or email if you have any questions.

Sincerely,

Mike McGinnis
SVP/Chief Investment Officer
214.703.7850
Contact Mike McGinnis