This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Farmer Mac Announces Completion Of $250 Million Securities Offering

WASHINGTON, Jan. 25 /PRNewswire-FirstCall/ -- The Federal Agricultural Mortgage Corporation (Farmer Mac, NYSE: AGM and AGM.A) announced today the completion of a private offering of securities consisting of $250 million aggregate face amount of Farm Asset Linked Capital Securities (the "FALConS") issued by FALConS Trust I, a newly formed Delaware statutory trust (the "Trust"). The FALConS represent undivided beneficial ownership interests in 250,000 shares of NonCumulative Perpetual Preferred Stock (the "Company Preferred Stock") of Farmer Mac's subsidiary, Farmer Mac II LLC, a newly formed Delaware limited liability company (the "Company").  The Company Preferred Stock has a liquidation preference of $1,000 per share.

The $250 million of proceeds from the offering of the FALConS were used by the Trust to purchase the Company Preferred Stock from Farmer Mac.  The Company issued its Company Preferred Stock and its common equity interest to Farmer Mac as consideration for the contribution by Farmer Mac to the Company of substantially all of the assets, in excess of $1.1 billion, comprising the Farmer Mac II Program business.  Farmer Mac began operating the Farmer Mac II Program after the U.S. Congress amended its statutory charter in 1990 to permit Farmer Mac to buy and sell guaranteed portions of certain newly originated and seasoned agricultural, rural development, business and industry and community facilities loans guaranteed by the United States Department of Agriculture pursuant to the Consolidated Farm and Rural Development Act.  Going forward, the Farmer Mac II Program business will be operated by the Company.  Farmer Mac will use the proceeds from the sale of the Company Preferred Stock to the Trust to repurchase and retire its outstanding Series B-1 Senior Cumulative Perpetual Preferred Stock, Series B-2 Senior Cumulative Perpetual Preferred Stock and Series B-3 Senior Cumulative Perpetual Preferred Stock having an aggregate liquidation preference of $150 million, and for general corporate purposes.  
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AGM.A $26.55 -1.30%
AGM $27.47 0.99%
AAPL $111.32 0.49%
FB $92.80 -1.29%
GOOG $645.44 0.62%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs