Farmer Mac Closes $302.7 Million Securitization of Agricultural Mortgage-Backed Securities (AMBS)


Published: Oct. 14, 2021 at 4:18 PM EDT|Updated: 12 minutes in the past

WASHINGTON, Oct. 14, 2021 /PRNewswire/ — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), a stockholder-owned, federally chartered company that gives a secondary marketplace for a range of loans made to debtors in rural America with the intent of growing the provision and affordability of credit score for the profit of rural America, introduced right this moment that it has accomplished a $302.7 million securitization of agricultural mortgage loans.

Farmer Mac Logo (PRNewsFoto/Farmer Mac) (PRNewsfoto/Farmer Mac)

“We are proud to announce the closing of the FARM Series 2021-1 securitization, a newly-structured and syndicated agricultural mortgage-backed securitization (AMBS),” mentioned President & Chief Executive Officer, Brad Nordholm.  “The success of this transaction is proof of Farmer Mac’s high-quality credit score, sturdy stability sheet and constant monetary efficiency and the resilience of America’s farmers and ranchers.  Developing this capital stream to agriculture producers exemplifies Farmer Mac’s core mission to enhance credit score availability in rural America whereas making a well-received new funding alternative for main institutional traders.”

The mortgage pool for FARM Series 2021-1 consists of 384 agricultural mortgage loans with an combination excellent principal stability of roughly $302.7 million.  The loans within the pool have been underwritten to Farmer Mac’s requirements and bought by Farmer Mac between July 2019 and December 2020.  This inaugural deal included a $280.0 million senior tranche assured by Farmer Mac and a $22.7 million unguaranteed subordinate tranche.

Credit Suisse Securities (USA) LLC acted as the only real structuring agent and bookrunner together with CastleOak Securities, L.P., as a promoting group member. Dechert LLP served as authorized advisor to Farmer Mac. Morgan, Lewis and Bockius LLP served as authorized advisor to Credit Suisse (USA) LLC and CastleOak Securities, L.P.

About Farmer Mac

Farmer Mac is an important half of the agricultural credit score markets and was created to extend entry to and cut back the price of credit score for the profit of American agricultural and rural communities. As the nation’s secondary marketplace for agricultural credit score, Farmer Mac offers monetary options to a broad spectrum of the agricultural group, together with agricultural lenders, agribusinesses, and different establishments that may profit from entry to versatile, low-cost financing and danger administration instruments. Farmer Mac’s prospects profit from its low value of funds, low overhead prices, and excessive operational effectivity. More details about Farmer Mac (together with the Annual Report on Form 10-Ok and the Quarterly Report on Form 10-Q referenced above) is out there on Farmer Mac’s web site at

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