WASHINGTON, Oct. 14, 2021 /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 $302.7 million securitization of agricultural
mortgage loans.
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"We are proud to announce the closing of the FARM Series 2021-1
securitization, a newly-structured and syndicated agricultural
mortgage-backed securitization (AMBS)," said President & Chief
Executive Officer, Brad Nordholm.
"The success of this transaction is evidence of Farmer Mac's
high-quality credit, strong balance sheet and consistent financial
performance and the resilience of America's farmers and ranchers.
Developing this capital flow to agriculture producers
exemplifies Farmer Mac's core mission to improve credit
availability in rural America while creating a well-received new
investment opportunity for leading institutional investors."
The mortgage pool for FARM Series 2021-1 consists of 384
agricultural mortgage loans with an aggregate outstanding principal
balance of approximately $302.7 million. The loans in the pool
were underwritten to Farmer Mac's standards and acquired by Farmer
Mac between July 2019 and December 2020. This inaugural
deal included a $280.0 million
senior tranche guaranteed by Farmer Mac and a $22.7 million unguaranteed subordinate
tranche.
Credit Suisse Securities (USA)
LLC acted as the sole structuring agent and 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 (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 referenced above) is available on
Farmer Mac's website at www.farmermac.com.
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SOURCE Farmer Mac