Farmer Mac Closes $318.8 Million Securitization of Agricultural Mortgage-Backed Securities (AMBS)
Farmer Mac (NYSE: AGM) has completed a $318.8 million securitization of agricultural mortgage loans, marking its fifth FARM series transaction since 2021. The FARM 2024-2 mortgage pool comprises 446 agricultural mortgage loans, featuring a $294.9 million senior tranche guaranteed by Farmer Mac and a $23.9 million unguaranteed subordinate tranche. The senior tranche is structured into three guaranteed classes (A, A1, and A2) offering different principal repayment cashflows to attract new investors. The transaction demonstrates strong demand from diverse investors and reinforces Farmer Mac's commitment to improving credit accessibility in rural America.
Farmer Mac (NYSE: AGM) ha completato una cartolarizzazione di mutui agricoli del valore di 318,8 milioni di dollari, segnando la sua quinta transazione della serie FARM dal 2021. Il pool di mutui FARM 2024-2 comprende 446 mutui agricoli, con una tranche senior garantita da Farmer Mac del valore di 294,9 milioni di dollari e una tranche subordinata non garantita di 23,9 milioni di dollari. La tranche senior è suddivisa in tre classi garantite (A, A1 e A2) che offrono diversi flussi di cassa per il rimborso del capitale al fine di attrarre nuovi investitori. La transazione dimostra una forte domanda da parte di investitori diversi e rafforza l'impegno di Farmer Mac nel migliorare l'accessibilità al credito nelle aree rurali americane.
Farmer Mac (NYSE: AGM) ha completado una titulización de préstamos hipotecarios agrícolas por un valor de 318,8 millones de dólares, marcando su quinta transacción de la serie FARM desde 2021. El grupo de hipotecas FARM 2024-2 comprende 446 préstamos hipotecarios agrícolas, con una tranche senior garantizada por Farmer Mac de 294,9 millones de dólares y una tranche subordinada no garantizada de 23,9 millones de dólares. La tranche senior se estructura en tres clases garantizadas (A, A1 y A2) que ofrecen diferentes flujos de efectivo para el reembolso del capital con el fin de atraer nuevos inversores. La transacción demuestra una fuerte demanda por parte de diversos inversionistas y refuerza el compromiso de Farmer Mac de mejorar el acceso al crédito en la América rural.
파머 맥 (NYSE: AGM)는 농업 담보 대출에 대한 3억 1,880만 달러 규모의 증권화 작업을 완료했으며, 이는 2021년 이후 다섯 번째 FARM 시리즈 거래입니다. FARM 2024-2 담보 대출 풀은 446개의 농업 담보 대출로 구성되어 있으며, 2억 9,490만 달러 규모의 파머 맥 보증 시니어 트란치와 2천 390만 달러 규모의 보증 없는 서브오디네이트 트란치를 포함하고 있습니다. 시니어 트란치는 신규 투자자를 유치하기 위해 서로 다른 원금 상환 현금 흐름을 제공하는 세 가지 보장 클래스(A, A1, A2)로 구조화됩니다. 이번 거래는 다양한 투자자들의 강한 수요를 보여주며, 미국 농촌 지역에서의 신용 접근성을 개선하려는 파머 맥의 의지를 강화합니다.
Farmer Mac (NYSE: AGM) a achevé une titrisation de prêts hypothécaires agricoles d'un montant de 318,8 millions de dollars, marquant sa cinquième transaction de la série FARM depuis 2021. Le portefeuille hypothécaire FARM 2024-2 comprend 446 prêts hypothécaires agricoles, comprenant une tranche senior garantie par Farmer Mac de 294,9 millions de dollars et une tranche subordonnée non garantie de 23,9 millions de dollars. La tranche senior est structurée en trois classes garanties (A, A1 et A2) offrant différents flux de remboursement du capital pour attirer de nouveaux investisseurs. La transaction démontre une forte demande de la part d'une diversité d'investisseurs et renforce l'engagement de Farmer Mac à améliorer l'accès au crédit dans les zones rurales américaines.
Farmer Mac (NYSE: AGM) hat eine Verbriefung von landwirtschaftlichen Hypothekendarlehen im Wert von 318,8 Millionen Dollar abgeschlossen, was die fünfte TRANSAKTION der FARM-Serie seit 2021 markiert. Der Hypothekenpool FARM 2024-2 besteht aus 446 landwirtschaftlichen Hypothekendarlehen, die eine von Farmer Mac garantierte Senior-Tranche in Höhe von 294,9 Millionen Dollar und eine ungarantierte subordinierte Tranche in Höhe von 23,9 Millionen Dollar umfasst. Die Senior-Tranche ist in drei garantierte Klassen (A, A1 und A2) unterteilt, die unterschiedliche Kapitalrückzahlungs-Cashflows bieten, um neue Investoren zu gewinnen. Die Transaktion zeigt eine starke Nachfrage von verschiedenen Investoren und bekräftigt das Engagement von Farmer Mac, den Zugang zu Krediten in ländlichen Gebieten Amerikas zu verbessern.
- Successfully completed $318.8M securitization of agricultural mortgage loans
- Structured offering with three guaranteed classes to attract new investors
- Strong investor demand reported for FARM securitization program
- Portfolio consists of 446 agricultural mortgage loans underwritten to industry-leading standards
- None.
Insights
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The pool of 446 agricultural mortgage loans underwritten to stringent standards indicates strong asset quality. This fifth FARM series transaction since 2021 establishes Farmer Mac as a consistent issuer in the AMBS market, potentially leading to improved liquidity and pricing for future offerings. The participation of major financial institutions as bookrunners adds credibility to the transaction.
The successful completion of this securitization indicates robust demand for agricultural mortgage-backed securities, particularly noteworthy given current market conditions. The diversified investor base and structured approach with multiple tranches suggests growing market maturity for agricultural financial products. This transaction strengthens Farmer Mac's role in providing liquidity to rural credit markets while managing its own balance sheet effectively.
The deal's sophisticated structure and strong investor reception could set a precedent for future agricultural securitizations, potentially expanding this market segment. The involvement of both major and boutique investment banks points to broad market distribution capabilities.
"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," said President and Chief Executive Officer, 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."
The mortgage pool for FARM Series 2024-2 consists of 446 agricultural mortgage loans with an aggregate outstanding principal balance of approximately
"We are once again thrilled to see such strong demand for our FARM securitization program from a broad range of investors," said Chief Financial Officer and Treasurer, Aparna Ramesh. "The FARM 2024-2 transaction exemplifies the strength and breadth of our platform and the continued strong demand for our attractive portfolio of agricultural mortgage loans. We look forward to growing this program by introducing new products that align with our mission fulfillment, while continuing to diversify our investor base."
BofA Securities, Inc. and Oppenheimer & Co. Inc. acted as joint bookrunners 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 BofA Securities, Inc., Oppenheimer & Co. Inc., CastleOak Securities, L.P., and Seaport Global Securities LLC.
About Farmer Mac
Farmer Mac is driven by its mission to increase the accessibility of financing for American agriculture and rural infrastructure. As a secondary market for our nation's agricultural and rural infrastructure credit, we provide financial solutions to a broad spectrum of customers supporting rural America, including agricultural lenders, agribusinesses, and rural electric cooperatives. We are uniquely positioned to facilitate competitive access to financing that fuels growth, innovation, and prosperity in America's rural and agricultural communities. Additional information about Farmer Mac is available on Farmer Mac's website at www.farmermac.com.
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SOURCE Farmer Mac
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