WASHINGTON, Jan. 14, 2013 /PRNewswire/ -- The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A) today reported that it will raise $60 million of Tier 1 capital through the public offering of 5.875% non-cumulative perpetual preferred stock. The preferred stock offering was priced today and is expected to settle on January 17, 2013. Farmer Mac will use the proceeds from the sale of the new preferred stock to redeem and retire all $57.6 million of Farmer Mac's currently issued and outstanding shares of Series C cumulative preferred stock. Farmer Mac expects to list the new series of preferred stock on the New York Stock Exchange under the symbol "AGM PR A." Farmer Mac's President and Chief Executive Officer Timothy L. Buzby stated, "The preferred stock issuance announced today will strengthen Farmer Mac's overall capital position and lower Farmer Mac's projected long-term dividend costs, as the proceeds will be used primarily to call a prior series of cumulative preferred stock with a dividend rate that was scheduled to increase to 7.0 percent in 2014 and 9.0 percent in 2019. Investor appetite for preferred stock recently has been robust, and we thought the time was right to lock in an attractive cost of Tier 1 equity for the future and to broaden Farmer Mac's investor base by tapping the retail market for this transaction." The dividend rate on the new preferred stock has no scheduled step-ups and will remain at a fixed rate of 5.875% for so long as it remains outstanding. The new issuance of preferred stock will have no maturity date, but Farmer Mac will have the option to redeem the preferred stock at any time on and after January 17, 2018. Bank of America Merrill Lynch served as Sole Book-Running Manager for this transaction, and Compass Point Research & Trading, LLC and Incapital LLC served as Co-Managers. This release does not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities referred to in this release.