Farmer Mac to Raise $75 Million in Stock Sale
The Federal Agricultural Mortgage Corp. (AGM) plans to sell $75 million worth of preferred stock in a public offering.
The government-sponsored institution, better known as Farmer Mac, will use proceeds from the offering to improve its capital position, according to its Friday press release. It may also use the profits to redeem a portion of preferred stock with a dividend rate that is scheduled to increase in March 2015, thereby reducing its expenses.
Farmer Mac will sell shares at $25 each, according to the release. The offering is scheduled to close on March 25.
Farmer Mac, established by Congress in the Agricultural Credit Act of 1987, aims to provide a secondary market for agricultural loans