Printer Friendly

$210,200,000 PUBLIC ISSUE OF FARMER MAC NOTES COMPLETED

 $210,200,000 PUBLIC ISSUE OF FARMER MAC NOTES COMPLETED
 WASHINGTON, June 9 /PRNewswire/ -- The Federal Agricultural Mortgage Corporation (Farmer Mac) announced the issuance of $210,200,000 of Farmer Mac Notes under its newly initiated unsecured medium-Term Note Program. In a related transaction, Farmer Mac guaranteed mortgage-backed securities issued against a $233 million pool of qualified agricultural real estate mortgage loans formed by Chemical Securities, Inc. (Chemical), a certified Farmer Mac pooler. The pool consists of qualified loans originated solely by The Travelers Insurance Company (The Travelers) located in Hartford, Conn.
 The transaction, which settled on Thursday, May 28, 1992, is the first "Linked Portfolio Strategy" transaction under the Farmer Mac I program. Under this strategy, the Notes issued by Farmer Mac, which are structured to "match" the maturities of the guaranteed mortgage- backed securities, establish a base for pricing the guaranteed securities backed by the pool of qualified loans. The guaranteed securities, issued by Chemical, were purchased by the Farmer Mac Mortgage Securities Corporation, a wholly owned subsidiary of Farmer Mac. The proceeds from the issue of Farmer Mac Notes were used to fund the purchase of the guaranteed securities in the resulting "matched" transaction.
 The pool, which represents only part of The Travelers total agricultural loan portfolio, consists of 790 loans secured by agricultural real estate in 31 states. The pool is distributed among all 10 of the Farmer Mac regions and represents farm commodities in 14 of the 16 Farmer Mac commodity categories. Maturities of the loans in the pool range widely up to a maximum of about 15 years. The Travelers, which has been an active credit provider for agricultural borrowers for years, has indicated an interest in using the Farmer Mac secondary market as a highly competitive source of funds to maintain or expand its ongoing agricultural lending operations.
 The guaranteed securities are backed by a subordinated interest in the pool of about $23 million held by The Travelers. The interest rates on the guaranteed securities are linked to the interest rates on the notes. Payments on the loans in the pool generate funds for payments due to the guaranteed security holder (the Farmer Mac subsidiary) and, in turn, for payments due on the notes. The average maturity of the guaranteed securities is 3.9 years.
 "We are very pleased to announce the securitization of this agricultural loan pool, which is the second pool formed under the Farmer Mac I program," stated Farmer Mac President Henry D. Edelman. "The completion of this transaction significantly advances the Farmer Mac program and it should pave the way for additional agricultural loan pools to be formed," he continued.
 The first Farmer Mac I pool, consisting of approximately $112 million of agricultural real estate loans, was formed and securitized in December 1991. John Hancock Mutual Life Insurance Company was the pooler in that transaction.
 Authorization for the Farmer Mac Linked Portfolio Strategy program was clarified by Congress in the Farm Bill Technical Corrections Act of 1991, enacted in December 1991. This program makes it possible for the Farmer Mac secondary market to very efficiently provide access to the capital markets for the purpose of funding the securitization of agricultural loan pools.
 -0- 6/9/92
 /CONTACT: Thomas R. Clark of Farmer Mac, 202-872-7700/ CO: Farmer Mac ST: District of Columbia IN: FIN SU:


TW-DC -- DC023 -- 8495 06/09/92 16:19 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 9, 1992
Words:564
Previous Article:EMERSON RADIO MAILS PROXY MATERIALS; ANNOUNCES NOMINEES
Next Article:PENN CENTRAL ANNOUNCES APPROVAL OF SPIN-OFF OF GENERAL CABLE


Related Articles
FARMER MAC ANNOUNCES FOURTH POOLER CERTIFICATION
FIRST PUBLIC OFFERING OF FARMER MAC GUARANTEED AGRICULTURAL MORTGAGE-BACKED SECURITIES
TRAVELERS REALTY INVESTMENT COMPANY CERTIFIED AS A FARMER MAC POOLER
FARM CREDIT BANK OF COLUMBIA CERTIFIED AS A FARMER MAC POOLER; FIRST FARM CREDIT SYSTEM POOLER
FARMER MAC CLASS C (NON-VOTING) COMMON STOCK AVAILABLE FOR UNRESTRICTED TRADING AND OWNERSHIP
FARMER MAC/WESTERN FARM CREDIT BANK JOIN FORCES TO FORM STRATEGIC ALLIANCE POOLING PROGRAM
FARMER MAC REFORM LEGISLATION BECOMES LAW
FARMER MAC RECEIVES MAJOR CLASS A STOCK PURCHASE OFFER; ZIONS FIRST NATIONAL BANK OFFERS $2.56 MILLION TO PURCHASE 320,000 NEWLY-ISSUED SHARES
FARMER MAC OPENS 'CASH WINDOW' FOR DIRECT PURCHASE OF QUALIFIED AGRICULTURAL MORTGAGE LOANS
Farmer Mac Guarantees $475 Million of 3-Year Notes.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters