News Column

Farmer Mac to Enhance Capital Position Through the Issuance of $75 Million of Series C Preferred Stock

July 5, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A) announced that it has agreed to issue $75 million of Tier 1 capital through the public offering of 6.000% fixed-to-floating rate non-cumulative perpetual Series C preferred stock, with a liquidation preference of $25.00 per share. The preferred stock offering is expected to close on June 20, 2014, subject to customary closing conditions. Farmer Mac intends to use the net proceeds from the sale of the preferred stock for general corporate purposes. Farmer Mac expects to list the Series C preferred stock on the New York Stock Exchange under the symbol "AGM PR C."

Holders of the Series C preferred stock will be entitled to receive a non-cumulative quarterly cash dividend, initially at a fixed rate of 6.000% per year from the original issue date to, and including, July 17, 2024, and thereafter, at a floating rate equal to three month U.S. dollar LIBOR plus 3.26% per year, when, as, and if declared by the Board of Directors of Farmer Mac. The Series C 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 July 18, 2024.

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. 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. The Series C preferred stock may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Keywords for this news article include: Farmer Mac, Investment and Finance.

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Source: Investment Weekly News


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