By Lisa Kerner
Charlotte, N.C., June 29 - Federal Agricultural Mortgage Corp. sold $4.2 million more of its series C non-voting cumulative preferred stock to National Rural Utilities Cooperative Finance Corp. on Thursday, according to an 8-K filing with the Securities and Exchange Commission.
This sale brings the total amount of preferreds sold to National Rural to $40 million. Farmer Mac first sold series C preferreds to National Rural in December.
The preferreds were sold at $1,000 each and pay an annual dividend of 5%, which will increase to 7% on Jan. 1, 2014 and to 9% on Jan. 1, 2019.
The preferreds are callable at par beginning Dec. 24, 2009.
As previously reported, the preferred sales are part of a Farmer Mac program in which participants using Farmer Mac for guarantee and purchase transactions involving portfolios of loans are required to purchase an equity interest in Farmer Mac in the form of series C preferreds.
Concurrent with the placement, Farmer Mac Mortgage Securities Corp. purchased, and Farmer Mac guaranteed, $105 million of floating-rate notes from National Rural as an advance under the $500 million borrowing facility entered into with National Rural in February.
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 amount on the facility.
Farmer Mac is a Washington, D.C.-based provider of financing for agricultural real estate and rural housing loans and liquidity to agricultural and rural housing lenders.
| Issuer: | Federal Agricultural Mortgage Corp.
|
| Issue: | Series C non-voting cumulative preferred stock
|
| Amount: | $4.2 million
|
| Dividend: | 5% per year, stepping up to 7% beginning Jan. 1, 2014 and to 9% beginning Jan. 1, 2019
|
| Call option: | Beginning Dec. 24, 2009 at par
|
| Investor: | National Rural Utilities Cooperative Finance Corp.
|
| Distribution: | Private placement
|
| Settlement date: | June 25
|
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