WASHINGTON, Feb. 23,
2023 /PRNewswire/ -- The Federal Agricultural
Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the
nation's secondary market provider that increases the accessibility
of financing for American agriculture and rural infrastructure,
announced today that it has completed a $283.6 million securitization of agricultural
mortgage loans.
"We are very pleased with the execution of our third transaction
in the FARM Series, FARM 2023-1 agricultural mortgage-backed
securitization (AMBS) as we return to the market in the new year,"
says President and Chief Executive Officer, Brad Nordholm. "We are encouraged by the strong
investor demand for this new asset class and believe this
transaction further demonstrates our commitment to building a
program that aligns with our mission to lower costs and improve
credit availability in rural America. We remain confident in our
ability to navigate the current environment and to continue to
pursue growth opportunities, and our commitment to developing a
vibrant and liquid AMBS market is central to that strategy."
The mortgage pool for FARM Series 2023-1 consists of 408
agricultural mortgage loans with an aggregate outstanding principal
balance of approximately $283.6 million. The loans in the pool
were underwritten to Farmer Mac's standards and acquired by Farmer
Mac between January 2021 and
February 2022. This deal included a
$262.3 million senior tranche
guaranteed by Farmer Mac and a $21.3
million unguaranteed subordinate tranche.
ATLAS SP Securities acted as the lead manager and sole
bookrunner 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 ATLAS SP Securities, CastleOak Securities,
L.P., and Seaport Global Securities LLC.
About Farmer Mac
Farmer Mac is a vital part of the agricultural credit markets
and was created to increase access to and reduce the cost of credit
for the benefit of American agricultural and rural communities. As
the nation's secondary market for agricultural credit, Farmer Mac
provides financial solutions to a broad spectrum of the
agricultural community, including agricultural lenders,
agribusinesses, and other institutions that can benefit from access
to flexible, low-cost financing and risk management tools. Farmer
Mac's customers benefit from its low cost of funds, low overhead
costs, and high operational efficiency. More information about
Farmer Mac is available on Farmer Mac's website at
www.farmermac.com.
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SOURCE Farmer Mac