WASHINGTON, May 8, 2019 /PRNewswire/ -- The
Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM
and AGM.A) today announced that it has agreed to issue $100 million of Tier 1 capital through the public
offering of 5.700% non-cumulative perpetual Series D preferred
stock, par value $25.00 per share.
The preferred stock offering is expected to close on May 13, 2019, subject to customary closing
conditions. Farmer Mac intends to use the net proceeds from
the sale of the preferred stock to redeem the $75 million aggregate outstanding par value and
liquidation preference of Farmer Mac's 6.875% non-cumulative
preferred stock, Series B and for general corporate purposes. This
press release shall not constitute a notice of redemption of such
Series B preferred stock. Farmer Mac expects to list the new series
of preferred stock on the New York Stock Exchange under the symbol
"AGM PR D."
The dividend rate on the new Series D preferred stock will
remain at a non-cumulative, fixed rate of 5.700% per year, when,
as, and if a dividend is declared by the Board of Directors of
Farmer Mac, for so long as the Series D preferred stock remains
outstanding. The Series D preferred stock will have no
maturity date, but Farmer Mac will have the option to redeem the
preferred stock at any time on any dividend payment date on and
after July 17, 2024. BofA
Merrill Lynch served as Sole Book-Running Manager for this
transaction. Compass Point Research & Trading, LLC, BTIG, LLC,
and Sidoti & Company, LLC served as Co-Managers for this
transaction.
The offering is being made pursuant to an exemption from
registration under the Securities Act of 1933, as amended, and is
being made solely by means of an offering circular. Copies of
the offering circular may be obtained from Merrill Lynch, Pierce,
Fenner & Smith Incorporated at 200 North College Street, 3rd
floor, Charlotte, NC 28255-0001,
attention: Prospectus Department, or email
dg.prospectus_requests@baml.com or phone at 1-800-294-1322.
Forward-Looking Statements
In addition to historical information, this release includes
forward-looking statements that reflect management's current
expectations for the preferred stock offering, Farmer Mac's
intended use of the proceeds from the offering and the closing date
of the offering. You should pay particular attention to the
important risk factors and cautionary statements described in the
"Risk Factors" section of the offering circular that relate to the
offering referenced above, as well as the risk factors discussed in
Farmer Mac's Annual Report on Form 10-K for the year ended
December 31, 2018, as filed with the
SEC on February 21, 2019. In
light of these potential risks and uncertainties, no undue reliance
should be placed on any forward-looking statements expressed in
this release. The forward-looking statements contained in
this release represent management's expectations as of the date of
this release. Farmer Mac undertakes no obligation to release
publicly the results of revisions to any forward-looking statements
included in this release to reflect new information or any future
events or circumstances, except as the SEC otherwise requires.
About Farmer Mac
Farmer Mac is a vital part of the agricultural credit markets
and was created to increase access to and reduce the cost of
capital for the benefit of American agricultural and rural
communities. As the nation's largest secondary market for
agricultural credit, we provide financial solutions to a broad
spectrum of the agricultural community, including agricultural
lenders, agribusinesses, and other institutions that can benefit
from access to flexible, low-cost financing and risk management
tools. Farmer Mac's customers benefit from our low cost of funds,
low overhead costs, and high operational efficiency.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/farmer-mac-prices-100-million-of-series-d-preferred-stock-300846791.html
SOURCE Farmer Mac