Form 8-K
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): April 19, 2007
|
Federal
Agricultural Mortgage Corporation
|
|
(Exact
name of registrant as specified in its
charter)
|
Federally
chartered
instrumentality
of
the United States
0-17440
52-1578738
(State
or other
jurisdiction of
(Commission
(I.R.S. Employer
incorporation
or
organization)
File
Number)
Identification
No.)
1133
Twenty-First Street, N.W., Suite 600, Washington,
D.C. 20036
(Address
of principal executive
offices)
(Zip Code)
Registrant’s
telephone number, including area code: (202) 872-7700
|
No
change
|
|
(Former
name or former address, if changed since last
report)
|
Section
2 - Financial Information
Item
2.03. Creation of an Obligation under an Off-Balance Sheet
Arrangement.
(b)
On
April 19, 2007, the Registrant became contingently liable for an obligation
arising out of an off-balance sheet arrangement by guaranteeing $1,000,000,000
principal amount of 5.125% Farmer Mac Guaranteed Notes of Farmer Mac Guaranteed
Notes Trust 2007-1 (the “Notes”). The Notes are general obligations of the
newly-created Farmer Mac Guaranteed Notes Trust 2007-1 and are secured by an
obligation of Metropolitan Life Insurance Company that is collateralized by
agricultural real estate mortgage loans eligible for the Registrant’s Farmer Mac
I program. The Registrant has fully and unconditionally guaranteed the timely
payment of principal and interest on the Notes.
Payments
of interest on the Notes at a per annum rate of 5.125% will be made
semi-annually in arrears on each April 19 and October 19, beginning October
19,
2007 until maturity on April 19, 2017. Payment of the full principal amount
of the Notes will be paid at maturity. The obligation of Metropolitan Life
Insurance Company that secures the Notes is intended to be the primary source
of
payments on the Notes and has terms that mirror the payment terms of the Notes.
The value of the agricultural real estate mortgage loans and other assets
collateralizing Metropolitan Life Insurance Company’s obligation is required to
be at least 103% of the principal amount of the obligation at all times. The
Registrant, as guarantor of the Notes, would have recourse to that collateral
in
the event that Metropolitan Life Insurance Company defaulted on its obligation
that secures the Notes.
The
maximum potential amount of future payments (undiscounted) that the Registrant
may be required to make pursuant to its guarantee of the Notes is
$1,512,500,000.
The
Notes
are not redeemable or callable before maturity and are not convertible to any
other security. The Notes were offered under Rule 144A under the Securities
Act
of 1933 only to U.S. and non-U.S. qualified institutional buyers and were not
registered under the Securities Act of 1933 or any state securities laws. The
Notes are rated Aaa, AAA and AAA, respectively, by Moody’s Investors Service,
Inc., Fitch Ratings Inc. and DBRS, Inc.
Section
7 - Regulation FD
Item
7.01. Regulation FD Disclosure.
On
April
19, 2007, Farmer Mac issued a press release to announce the completion of a
$1 billion agricultural mortgage-backed notes guarantee transaction. A copy
of the press release is attached to this report as Exhibit 99.
Section
9 - Financial Statements and Exhibits
Item
9.01. Financial Statements and Exhibits.
99. Press
Release dated April 19, 2007.
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
Name: Jerome G. Oslick
Title: Vice President - General Counsel
Dated: April
19,
2007