WASHINGTON, Aug. 11,
2022 /PRNewswire/ -- The Federal Agricultural
Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), a
stockholder-owned, federally chartered corporation that provides a
secondary market for a variety of loans made to borrowers in rural
America with the intent of increasing the availability and
affordability of credit for the benefit of rural America, announced
today that it has completed a $301.1
million securitization of agricultural mortgage
loans.
"We are proud to announce the closing of the second transaction
in the FARM Series, FARM 2022-1 agricultural mortgage-backed
securitization (AMBS)," said President & Chief Executive
Officer, Brad Nordholm. "The success
of this transaction further demonstrates our capability to
diversify long-term funding sources and use this conduit to
generate additional revenue streams. Securitization is a tremendous
opportunity for Farmer Mac, as developing this capital flow to
agricultural producers exemplifies Farmer Mac's core mission to
lower costs for borrowers and improve credit availability in rural
America, while creating a new investment opportunity for
institutional investors. We remain confident in our ability to
navigate the current environment and to continue to pursue growth
opportunities, including our focus on developing a vibrant and
liquid AMBS market going forward."
The mortgage pool for FARM Series 2022-1 consists of 450
agricultural mortgage loans with an aggregate outstanding principal
balance of approximately $301.1 million. The loans in the pool
were underwritten to Farmer Mac's standards and acquired by Farmer
Mac between January 2021 and
November 2021. This deal included a
$278.5 million senior tranche
guaranteed by Farmer Mac and a $22.6
million unguaranteed subordinate tranche.
Credit Suisse Securities (USA)
LLC acted as the structuring agent and sole bookrunner along with
CastleOak Securities, L.P., as a selling group member.
Dechert LLP served as legal advisor to Farmer Mac. Morgan,
Lewis and Bockius LLP served as legal advisor to Credit Suisse
Securities (USA) LLC and CastleOak
Securities, L.P.
About Farmer Mac
Farmer Mac is a vital part of the agricultural credit markets
and was created to increase access to and reduce the cost of credit
for the benefit of American agricultural and rural communities. As
the nation's secondary market for agricultural credit, Farmer Mac
provides financial solutions to a broad spectrum of the
agricultural community, including agricultural lenders,
agribusinesses, and other institutions that can benefit from access
to flexible, low-cost financing and risk management tools. Farmer
Mac's customers benefit from its low cost of funds, low overhead
costs, and high operational efficiency. More information about
Farmer Mac (including the Annual Report on Form 10-K and the
Quarterly Report on Form 10-Q) is available on Farmer Mac's website
at www.farmermac.com.
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SOURCE Farmer Mac