WASHINGTON, Nov. 26,
2024 /PRNewswire/ -- The Federal Agricultural
Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the
nation's secondary market provider that increases the accessibility
of financing for American agriculture and rural infrastructure,
announced today that it has completed a $318.8 million securitization of agricultural
mortgage loans. This is Farmer Mac's fifth transaction in the FARM
series since 2021.
"We are very pleased with the execution of our fifth
agricultural mortgage-backed securitization (AMBS) transaction,
FARM 2024-2, as we returned to the market for a second time in
2024," said President and Chief Executive Officer, Brad Nordholm. "Farmer Mac remains committed to
being a frequent issuer and developing a vibrant and liquid AMBS
market that is central to our core mission to improve credit
accessibility in rural America."
The mortgage pool for FARM Series 2024-2 consists of 446
agricultural mortgage loans with an aggregate outstanding principal
balance of approximately $318.8
million. The loans in the pool were underwritten to Farmer
Mac's industry-leading standards that focus on repayment capacity
through stressed inputs. This deal included a $294.9 million senior tranche guaranteed by
Farmer Mac and a $23.9
million unguaranteed subordinate tranche. The senior tranche
reflects an enhanced sophistication of the securitization by
offering notes in three classes, A, A1, and A2, each of which are
guaranteed by Farmer Mac. These three guaranteed classes provide
for differing principal repayment cashflows, which provided more
investment options and drove new investor demand.
"We are once again thrilled to see such strong demand for our
FARM securitization program from a broad range of investors," said
Chief Financial Officer and Treasurer, Aparna Ramesh. "The FARM 2024-2 transaction
exemplifies the strength and breadth of our platform and the
continued strong demand for our attractive portfolio of
agricultural mortgage loans. We look forward to growing this
program by introducing new products that align with our mission
fulfillment, while continuing to diversify our investor base."
BofA Securities, Inc. and Oppenheimer & Co. Inc. acted as
joint bookrunners along with CastleOak Securities, L.P. and Seaport
Global Securities LLC, as selling group members. Dechert LLP served
as legal advisor to Farmer Mac. Morgan, Lewis and Bockius LLP
served as legal advisor to BofA Securities, Inc., Oppenheimer &
Co. Inc., CastleOak Securities, L.P., and Seaport Global Securities
LLC.
About Farmer Mac
Farmer Mac is driven by its mission to increase the
accessibility of financing for American agriculture and rural
infrastructure. As a secondary market for our nation's agricultural
and rural infrastructure credit, we provide financial solutions to
a broad spectrum of customers supporting rural America, including
agricultural lenders, agribusinesses, and rural electric
cooperatives. We are uniquely positioned to facilitate competitive
access to financing that fuels growth, innovation, and prosperity
in America's rural and agricultural communities. Additional
information about Farmer Mac is available on Farmer Mac's website
at www.farmermac.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/farmer-mac-closes-318-8-million-securitization-of-agricultural-mortgage-backed-securities-ambs-302316871.html
SOURCE Farmer Mac
