Federal Agricultural Mortgage Corp Announces $100M Preferred Stock Offering

What Happened
On May 12, 2026, Federal Agricultural Mortgage Corporation (Farmer Mac, AGM) announced it priced an offering of 4,000,000 shares (gross proceeds $100.0 million) of 6.875% Non‑Cumulative Preferred Stock, Series I. The preferred shares have a $25.00 par value and $25.00 liquidation preference per share, are not convertible or exchangeable into any other class or series, and are expected to settle on May 19, 2026. Net proceeds before expenses are expected to be approximately $97 million and will be used for general corporate purposes. The offering was made under an exemption from registration under Section 3(a)(2) of the Securities Act because Farmer Mac is a Congressionally chartered instrumentality. Farmer Mac also issued a press release about the pricing (attached as Exhibit 99).

Key Details

• Offering size: 4,000,000 shares / $100.0 million gross proceeds
• Dividend rate: 6.875% (non‑cumulative)
• Par value / liquidation preference: $25.00 per share
• Expected net proceeds: ~ $97.0 million; expected settlement date: May 19, 2026
• Shares not convertible/exchangeable; offering relied on Section 3(a)(2) exemption
• Regulation FD disclosure: press release issued May 12, 2026 (Exhibit 99)

Why It Matters
This offering raises near‑term capital for Farmer Mac—about $97M after expenses—which can support operations or balance‑sheet flexibility without issuing common stock. The preferred securities carry a fixed 6.875% dividend obligation and have priority over common equity in liquidation, but are non‑convertible so they do not dilute common shareholders. Investors should note the dividend rate and payment priority when assessing capital structure and potential impacts on earnings available to common shareholders. The filing also includes a Regulation FD disclosure (press release) announcing the transaction.