St. Paul, Minn., Tuesday, October 29, 2013 – St. Paul-based AgriBank today announced it has issued $250 million in preferred stock. The Series A noncumulative perpetual preferred stock has a dividend rate fixed for 10 years at 6.875 percent and then resets to three-month LIBOR plus 4.225 percent and is callable after 10 years.
This stock offering will provide AgriBank and the 15-state Farm Credit District it serves with long-term access to capital, bolstering the Bank's already strong reserves with high-quality, tier-one capital.
This strong capital position will enable AgriBank, which is a cooperative owned by 17 Farm Credit Associations in its District, to support future growth and ensure the District is well-positioned to meet the long-term credit needs of farmer and rancher customers.
"Farm Credit's mission is to ensure that American farmers and ranchers have reliable access to funding through agriculture's economic cycles," said AgriBank Chief Executive Officer Bill York. "Times have been good. We are well-capitalized, which affords us the opportunity to access high-quality capital. Offering preferred stock now will position the AgriBank District to meet the future needs of our customers and any challenges that lie ahead."
Bank of America Merrill Lynch and Morgan Stanley served as joint bookrunners on the Series A preferred stock transaction.
AgriBank is one of the largest banks within the national Farm Credit System, with more than $80 billion in total assets. Under the Farm Credit System's cooperative structure, AgriBank is owned by 17 affiliated Farm Credit Associations. The AgriBank District covers America's Midwest, a fifteen state area from Wyoming to Ohio and Minnesota to Arkansas. More than half of the nation's cropland is located within the AgriBank District, providing the Bank and its Association owners with exceptional expertise in production agriculture. For more information visit www.agribank.com.