By Kenneth Lim
Boston, May 4 - Federal Agricultural Mortgage Corp. sold an additional $4 million of its series C 5% non-voting cumulative preferred stock in a private placement to National Rural Utilities Cooperative Finance Corp. on April 29, according to an 8-K filing with the Securities and Exchange Commission.
Including the new preferreds, Farmer Mac has an outstanding 30,000 shares, or $30 million, of the securities. The first series C preferreds were sold in December 2008.
The preferreds may be called at par one year after issuance, subject to approvals from the Farm Credit Administration and holders of at least two-thirds of the existing series B-1 senior preferred stock.
Concurrent with the placement, Farmer Mac will guarantee and buy $100 million of floating-rate notes from National Rural as an advance under a new $500 million borrowing facility with National Rural. The preferred placement fulfills National Rural's obligation under the facility to buy series C preferreds at least equal to 4% of the outstanding principal in the facility.
| Issuer: | Federal Agricultural Mortgage Corp.
|
| Issue: | Series C non-voting cumulative preferred stock
|
| Amount: | $4 million
|
| Price: | $1,000
|
| Dividend: | 5%
|
| Call: | Callable after one year at par
|
| Investor: | National Rural Utilities Cooperative Finance Corp.
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| Settlement date: | April 29
|
| Distribution: | Private placement
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