Farmer Mac Closes $318.8 Million Securitization of Agricultural Mortgage-Backed Securities (AMBS)
Rhea-AI Summary
Farmer Mac (NYSE: AGM) has completed a $318.8 million securitization of agricultural mortgage loans, marking its fifth FARM series transaction since 2021. The FARM 2024-2 mortgage pool comprises 446 agricultural mortgage loans, featuring a $294.9 million senior tranche guaranteed by Farmer Mac and a $23.9 million unguaranteed subordinate tranche. The senior tranche is structured into three guaranteed classes (A, A1, and A2) offering different principal repayment cashflows to attract new investors. The transaction demonstrates strong demand from diverse investors and reinforces Farmer Mac's commitment to improving credit accessibility in rural America.
Positive
- Successfully completed $318.8M securitization of agricultural mortgage loans
- Structured offering with three guaranteed classes to attract new investors
- Strong investor demand reported for FARM securitization program
- Portfolio consists of 446 agricultural mortgage loans underwritten to industry-leading standards
Negative
- None.
News Market Reaction – AGM
In the trading session that priced this news, AGM declined 0.21%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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"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
"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.
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SOURCE Farmer Mac