UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2002
Federal Agricultural Mortgage Corporation
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(Exact name of registrant as specified in its charter)
Federally chartered
instrumentality of
the United States 0-17440 52-1578738
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1133 21st Street, N.W., Suite 600, Washington, D.C. 20036
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (202) 872-7700
No Change
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(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
99 Press release dated May 6, 2002.
Item 9. Regulation FD Disclosure.
On May 6, 2002, the Registrant issued a press release to announce its
issuance of $35 million of fixed rate cumulative preferred stock. The press
release is filed as Exhibit 99 hereto and incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION
By: /s/ Jerome G. Oslick
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Name: Jerome G. Oslick
Title: Vice President - General Counsel
Dated: May 7, 2002
EXHIBIT INDEX
Exhibit No. Description Page No.
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99 Press Release Dated May 6, 2002 5
Exhibit 99
NEWS
FOR IMMEDIATE RELEASE CONTACT
May 6, 2002 Jerome Oslick
202-872-7700
Farmer Mac Announces Issuance of
$35 Million in Preferred Stock
Washington, D.C. -- The Federal Agricultural Mortgage Corporation (Farmer
Mac, NYSE: AGM and AGMA) today announced that it has issued $35 million (700
thousand shares) of fixed rate perpetual preferred stock that is cumulative as
to dividends--the Corporation's first-ever preferred stock issuance.
The preferred stock, designated Series A, was offered to investors at $50
per share with a fixed dividend rate of 6.40%. Dividends will be paid quarterly
starting on June 30, 2002, and Farmer Mac will have the option to redeem all or
part of the shares at $50 per share plus accrued dividends at any time on or
after June 30, 2012. The offering is structured to be eligible for the
"Dividends-Received Deduction" under current federal tax law. Proceeds from the
issue will be used for general corporate purposes. Bear, Stearns & Co. Inc.
acted as the sole underwriter for the issue.
The issuance, which has been under way for several months, increases Farmer
Mac's regulatory core capital from $134.0 million as of March 31, 2002, to over
$169.0 million, and more than $56.0 million in excess of its minimum capital
requirement.
Farmer Mac President and Chief Executive Officer Henry D. Edelman observed,
"While our need for additional regulatory capital is not immediate, we found the
current interest rate environment attractive and deemed it an appropriate time
to enhance our capital position in anticipation of a continuation of our recent
growth trends. The additional equity permits us to expand our capital base while
preserving our return on common equity."
This press release does not constitute an offer of sale. Such an offer of
sale may only be made by means of an offering circular.
Farmer Mac is a stockholder-owned instrumentality of the United States
chartered by Congress to establish a secondary market for agricultural real
estate and rural housing mortgage loans, and to facilitate capital market
funding for USDA guaranteed farm program and rural development loans. Farmer
Mac's Class C and Class A common stocks are listed on the New York Stock
Exchange under the symbols AGM and AGMA, respectively. Additional information
about Farmer Mac is available on Farmer Mac's website at www.farmermac.com.