By Lisa Kerner
Charlotte, N.C., Aug. 17 - Federal Agricultural Mortgage Corp. sold 17,000 more of its series C non-voting cumulative preferred stock to National Rural Utilities Cooperative Finance Corp. for $17 million, or $1,000 each, on Aug. 11, according to an 8-K filing with the Securities and Exchange Commission.
The sale brings the number of series C preferreds outstanding to 57,000, the filing said.
It was previously reported that the preferreds 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.
Concurrent with the placement, Farmer Mac Mortgage Securities Corp. purchased, and Farmer Mac guaranteed, $425 million of floating-rate notes from National Rural as an advance under a $1 billion borrowing facility entered into with National Rural in May.
National Rural, under the May facility, will be required to purchase series C preferreds in an amount sufficient to maintain a balance at all times that is at least equal to 4% of the principal amount of the notes outstanding under the new 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: | $17 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: | Aug. 11
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