The Federal Agricultural Mortgage Corp. (Farmer Mac) has raised additional capital in a private offering of shares of non-cumulative, perpetual preferred stock of Farmer Mac II LLC, a recently organized Delaware limited liability company in which Farmer Mac owns all of the common equity.
Farmer Mac II LLC is now operating the Farmer Mac II business, which began purchasing and holding U.S. Department of Agriculture-guaranteed loans in 1992. Farmer Mac is using the proceeds from the sale of the $250 million of Farmer Mac II LLC preferred stock to repurchase and retire $150 million of Farmer Mac's currently outstanding Series B preferred stock and to further enhance Farmer Mac's regulatory capital position.
"In the fall of 2008, our business partners invested in Farmer Mac when we needed to raise capital," explains Farmer Mac President and CEO Michael Gerber. "This sale of our subsidiary's preferred stock allows us to pay back those business partners in full while further strengthening our balance sheet to support the continued fulfillment of our congressional mission.’
SOURCE: Farmer Mac