Form 8K Press Release 060720
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): July 20, 2006
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
July 20, 2006, 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 5.50% Farmer Mac Guaranteed Notes of Farmer Mac Guaranteed
Notes Trust 2006-2 (the “Notes”). The Notes are general obligations of the
newly-created Farmer Mac Guaranteed Notes Trust 2006-2 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 interest and principal on the Notes.
Payments
of interest on the Notes at a per annum rate of 5.50% will be made semi annually
in arrears on each January 15 and July 15, beginning January 15, 2007 until
maturity on July 15, 2011. 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
$1.275 billion.
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 and Dominion Bond Rating Service.
Section
7 - Regulation FD
Item
7.01. Regulation FD Disclosure.
On
July
20, 2006, 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 July 20, 2006.
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: July
20,
2006