#USA #Washington #Farmer Mac #Series I Preferred Stock #Agricultural Mortgage

Farmer Mac Announces $100 Million Series I Preferred Stock Offering

On May 12, 2026, the Federal Agricultural Mortgage Corporation, known as Farmer Mac, unveiled plans to issue $100 million worth of Series I preferred stock. This offering represents a crucial step in enhancing financial resources aimed at supporting American agriculture and rural infrastructure. This initiative aligns perfectly with Farmer Mac's mission to improve the accessibility of financing in these vital sectors.

Details of the Offering

The securities involved are characterized by a 6.875% non-cumulative perpetual preferred stock, with a par value of $25.00 per share. The anticipated closing date for this offering is set for May 19, 2026, contingent upon standard closing conditions being met. The shares from this new series are expected to list on the New York Stock Exchange under the ticker symbol "AGM PRI."

A fixed rate of 6.875% per annum will be attached to the Series I preferred stock as long as dividends are declared by Farmer Mac's Board of Directors. Notably, the preferred stock does not come with a maturity date; however, Farmer Mac holds the option to redeem these shares on any dividend payment date from July 17, 2031, and onwards.

Investor enthusiasm is likely to be bolstered by the sound financial backing provided through this public offering. Morgan Stanley & Co. LLC is acting as the Sole Book-Running Manager for this transaction, while RBC Capital Markets, LLC and Wells Fargo Securities, LLC are serving as co-managers.

Purpose of the Proceeds

Farmer Mac aims to utilize the proceeds derived from this preferred stock offering for general corporate purposes. This move will not only enhance Farmer Mac's capital structure but will also augment its capacity to serve the agricultural community through various financing solutions. As a key player in the secondary market for agricultural mortgages, Farmer Mac's initiatives tend to have far-reaching effects on the rural economy.

The organization's offerings span numerous financial solutions aimed at fulfilling the liquidity, growth, and risk management needs of financial institutions involved with sectors like agriculture, agribusiness, broadband infrastructure, and renewable energy. This positions Farmer Mac uniquely to facilitate equitable access to financing that underpins economic growth and prosperity in rural America.

Insights and Outlook

This public offering is being conducted in line with an exemption from registration under the Securities Act of 1933 and will be circulated solely through an offering circular. Morgan Stanley will provide access to this circular upon request.

In a forward-looking context, this announcement also contains statements regarding future expectations, intended use of proceeds, and closing dates. It’s crucial for stakeholders to consider the associated risk factors detailed within the offering circular. Farmer Mac emphasizes that foreseeing these risks is integral to evaluating the offering's potential benefits.

About Farmer Mac

Farmer Mac is recognized for its commitment to bridging the financing gap in agriculture and related infrastructure sectors, ultimately fostering a robust rural economy. Through its secondary market operations, the corporation assures liquidity for agricultural and infrastructure businesses across the nation. As an organization uniquely devoted to agriculture, Farmer Mac's capabilities extend to offering comprehensive financial solutions crafted to meet a wide array of needs across various economic sectors.

Additional information about Farmer Mac and its offerings can be found on its official website.

In conclusion, the $100 million Series I preferred stock offering not only highlights Farmer Mac's proactive approach to increasing its capital but also reflects its ongoing commitment to supporting the agricultural sectors that are pivotal for America's sustenance and growth.