Farmer Mac Prices $100M Series I Preferred Stock

The Federal Agricultural Mortgage Corporation, known as Farmer Mac, has agreed to issue $100 million of Tier 1 capital through a public offering of 6.875% non-cumulative perpetual Series I preferred stock [1]. The offering consists of 4,000,000 shares with a par value of $25.00 per share and is expected to close on May 19, 2026, subject to customary closing conditions [1][3].

Key takeaways

• Farmer Mac announced a $100 million public offering of 6.875% non-cumulative perpetual Series I preferred stock [1].
• The shares have a par value of $25.00 and are expected to list on the NYSE under the symbol "AGM PRI" [1].
• Net proceeds, estimated at approximately $97 million before expenses, will be used for general corporate purposes [1][3].
• Morgan Stanley & Co. LLC served as the Sole Book-Running Manager, with RBC Capital Markets and Wells Fargo Securities as co-managers [1].

Terms of the Series I Offering

The Series I preferred stock carries a fixed dividend rate of 6.875% per year, which is non-cumulative and payable only when declared by the Board of Directors [1]. While the stock has no maturity date, Farmer Mac retains the option to redeem the shares on any dividend payment date on or after July 17, 2031 [1]. The offering is being made pursuant to an exemption from registration under the Securities Act of 1933, available to Farmer Mac as a U.S. government instrumentality, and is conducted solely through an offering circular [1][3].

Farmer Mac expects to list the new series on the New York Stock Exchange under the symbol "AGM PRI" [1]. According to The Globe and Mail, the issue is non-convertible and is expected to generate approximately $97 million in net proceeds before expenses [3]. The corporation states that the offering is designed to provide additional capital that may strengthen its funding flexibility and balance sheet [3].

Transaction Management and Structure

Morgan Stanley & Co. LLC acted as the Sole Book-Running Manager for the transaction, while RBC Capital Markets, LLC and Wells Fargo Securities, LLC served as co-managers [1]. Interested parties can obtain a copy of the offering circular by contacting Morgan Stanley’s Prospectus Department in New York [1].

Farmer Mac is a Congressionally chartered corporation that operates as an instrumentality of the United States, providing financing solutions to the agricultural sector [3]. The company’s mission focuses on increasing the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure through a secondary market [1].

Why it matters

Farmer Mac intends to use the net proceeds from this sale for general corporate purposes [1]. The issuance of this Tier 1 capital supports the company's mandate to facilitate competitive access to financing for agricultural and rural communities [1]. The Globe and Mail notes that the terms of the offering, including the fixed dividend rate and non-cumulative feature, reflect investor demand for yield and regulatory considerations for hybrid capital instruments [3].