The Federal Agricultural Mortgage Corporation, more commonly known as Farmer Mac (NYSE: AGM, AGM.A), announced its completion of a $308.1 million securitization of agricultural mortgage loans.
The completed securitization is Farmer Mac’s fourth transaction in the FARM series since 2021. The mortgage pool for FARM Series 2024-1 consists of 443 agricultural mortgage loans with an aggregate outstanding principal balance of approximately $308.1 million. The loans in the pool were underwritten to Farmer Mac’s standards and acquired by Farmer Mac between February 2022 and August 2023. This deal included a $285 million senior tranche guaranteed by Farmer Mac and a $23.1 million unguaranteed subordinate tranche.
“We are very pleased with the execution of our fourth agricultural mortgage-backed securitization (AMBS) transaction, FARM 2024-1, as we return to the market in the new year,” said President and CEO Brad Nordholm. “Farmer Mac remains committed to developing a vibrant and liquid AMBS market that is central to our core mission to improve credit accessibility in rural America.”
“We have witnessed significant volatility in the credit markets over the past year and the fact that we were able to generate more than three times the demand for this offering is a testament to Farmer Mac’s reputation with institutional investors and the overall market appetite for the underlying agricultural asset class,” added Chief Financial Officer and Treasurer Aparna Ramesh. “Not only was demand strong but we were able to successfully expand our investor base and introduce new classes of senior notes to address cashflow demands of capital markets.”
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