National Rural Utilities Cooperative Finance Corporation

01/15/2025 | Press release | Distributed by Public on 01/15/2025 09:41

Material Agreement Form 8 K

Item 1.01
Entry into a Material Definitive Agreement.
On January 14, 2025, National Rural Utilities Cooperative Finance Corporation ("CFC") entered into a Fifth Amended and Restated First Supplemental Note Purchase Agreement (the "Supplemental Note Purchase Agreement") with Farmer Mac Mortgage Securities Corporation ("FMMSC"), a subsidiary of Federal Agricultural Mortgage Corporation ("Farmer Mac"), as Purchaser, and Farmer Mac, as Guarantor. This agreement amends the terms for issuing notes under the Amended and Restated Master Note Purchase Agreement, originally dated March 24, 2011, and subsequently amended as follows:
•First Supplemental Note Purchase Agreement: March 24, 2011
•Amended and Restated First Supplemental Note Purchase Agreement: January 8, 2015
•Second Amended and Restated First Supplemental Note Purchase Agreement: February 26, 2018
•Third Amended and Restated First Supplemental Note Purchase Agreement: May 20, 2021
•Fourth Amended and Restated First Supplemental Note Purchase Agreement: June 15, 2022
The Supplemental Note Purchase Agreement:
•Increases the Maximum Purchase Amount from $6 billion to $6.5 billion
•Extends the draw period for notes from June 30, 2027, to January 14, 2030
•Allows for successive one-year renewals upon sixty days' notice by CFC, subject to approval by Farmer Mac and Farmer Mac Mortgage Securities Corporation
As of January 14, 2025, the Company has $3.5 billion of secured notes outstanding under the Master Note Purchase Agreement. Also on January 14, 2025, Farmer Mac, FMMSC, CFC and U.S. Bank National Association, as collateral agent, entered into a Third Amended and Restated Pledge Agreement ("Amended Pledge Agreement"), which amends and restates in its entirety the Second Amended, Restated and Consolidated Pledge Agreement, dated as of July 31, 2015. CFC is required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Supplemental Note Purchase Agreement.
The foregoing description is a summary and is qualified in its entirely by reference to the full text of the Supplemental Note Purchase Agreement and Amended Pledge Agreement, which will be filed as exhibits to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended February 28, 2025