Farmer Mac has completed a $318.8 million securitization of agricultural mortgage loans, representing the organization’s fifth transaction in the FARM series since 2021.
The mortgage pool for FARM Series 2024-2 consists of 446 agricultural mortgage loans with an aggregate outstanding principal balance of approximately $318.8 million. This deal included a $294.9 million senior tranche guaranteed by Farmer Mac and a $23.9 million unguaranteed subordinate tranche. The senior tranche offers notes in three classes – A, A1, and A2 – each of which is guaranteed by Farmer Mac.
These three guaranteed classes provide for differing principal repayment cashflows, which provided more investment options and drove new investor demand, the company says.
“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,” says president and CEO 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.”
BofA Securities and Oppenheimer & Co. acted as joint bookrunners, along with CastleOak Securities and Seaport Global Securities as selling group members. Dechert LLP served as legal advisor to Farmer Mac. Morgan, Lewis and Bockius served as legal advisor to BofA Securities, Oppenheimer & Co., CastleOak Securities and Seaport Global Securities.
