Terms

Series

4.875% Non-Cumulative Preferred Stock, Series G

Liquidation Preference

$25.00

Coupon Rate

4.875%

Rate Type

Fixed

Annual Dividend

$1.22

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

July 17, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Pari Passu With: 6.000% Fixed-To-Floating Rate Non-Cumulative Preferred Stock, Series C, 5.700% Non-Cumulative Preferred Stock, Series D, 5.750% Non-Cumulative Preferred Stock, Series E, 5.250% Non-Cumulative Preferred Stock, Series F; Senior To: Class A Voting Common Stock, Class B Voting Common Stock, Class C Non-Voting Common Stock

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Shares Offered

5,000,000

Prospectus Summary

Federal Agricultural Mortgage Corporation (Farmer Mac) is issuing 5,000,000 shares of 4.875% Non-Cumulative Preferred Stock, Series G, with a par value and liquidation preference of $25.00 per share. The stock pays a fixed quarterly dividend of $0.3046875 per share ($1.21875 annually), corresponding to the 4.875% coupon rate. Dividends are declared at the discretion of the Board and are paid on January 17, April 17, July 17, and October 17. Because this is non-cumulative, any dividends that are not declared in a given quarter are forfeited permanently; there is no arrearage of undeclared dividends. Series G preferred stock ranks senior to all classes of Farmer Mac common stock (Class A Voting, Class B Voting, and Class C Non-Voting) and on parity with four existing series of preferred stock (Series C 6.000% Fixed-to-Floating, Series D 5.700%, Series E 5.750%, and Series F 5.250%). As Farmer Mac is a federally chartered instrumentality under the Farm Credit Act, there is no structural subordination to a bank subsidiary; however, the preferred is necessarily junior to any senior debt obligations of Farmer Mac itself. No regulatory capital call provision is stated. Under the dividend stopper provisions, no dividends may be paid on common stock unless the full current-quarter dividend on Series G has been declared and paid (or set aside) on the preferred. At par ($25.00), the effective yield is 4.875% annually, or 1.21875% per quarter. Farmer Mac is a federally chartered entity, and its preferred dividends do not qualify for the 15%/20% preferential qualified dividend income (QDI) rate; they are taxed as ordinary income to individual holders and are unlikely to qualify for the corporate dividends-received deduction. Dividends are payable quarterly (January 17, April 17, July 17, October 17), with a record date established between 45 and 10 days prior to each payment date. The dividend stopper mechanism prevents any payment on common stock unless the full current quarterly preferred dividend has been declared and paid; however, because the preferred is non-cumulative, if the Board simply does not declare a dividend in any quarter, preferred holders have no claim to that missed payment.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

No dividends may be paid on common stock or junior preferred stock unless the full current quarterly dividend on Series G has been declared and paid (or set apart for payment) on the current Dividend Payment Date. This is a non-cumulative security, so missed dividends create no claim.

Other Preferreds from Federal Agricultural Mortgage Corporation

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 45 (Average)