Farmer Mac Issues $100M of 6.875% Non-Cumulative Series I Preferred Stock
Farmer Mac announced a public offering of $100 million of non-cumulative perpetual Series I preferred stock with a fixed 6.875% dividend rate, expected to close on May 19, 2026. The issue will bolster Tier 1 capital, is redeemable on any dividend payment date after July 17, 2031, and proceeds will fund general corporate purposes.
1. Offering Details
Farmer Mac has agreed to issue $100 million of Series I preferred stock in a public offering of non-cumulative perpetual shares, each with a $25 par value and a fixed annual dividend rate of 6.875%. The offering is set to close on May 19, 2026, subject to customary closing conditions.
2. Dividend and Redemption Features
Dividends on the Series I shares will be non-cumulative and paid only when declared by the board of directors. While the shares have no maturity date, Farmer Mac may redeem them on any dividend payment date on or after July 17, 2031.
3. Use of Proceeds
Net proceeds from the preferred stock sale will be used for general corporate purposes, enhancing Farmer Mac’s Tier 1 capital base to support its agricultural and rural infrastructure financing activities. This capital infusion strengthens the company’s regulatory capital ratios.
4. Underwriting and Listing
Morgan Stanley & Co. LLC served as sole book-running manager, with RBC Capital Markets and Wells Fargo Securities as co-managers. The new Series I preferred stock is expected to list on the New York Stock Exchange under the symbol “AGM PRI.”