American AgCredit Completes $150 Million Capital Transaction to Support Rural Agriculture
American AgCredit, a Farm Credit cooperative serving U.S. agriculture and rural communities, completed a capital transaction by issuing $150 million in subordinated notes through the private markets. The proceeds will be used alongside existing cash reserves to redeem $200 million of outstanding Series A Preferred Stock. This move is part of an effort to optimize its cost of capital and strengthen financial stability so it can continue supporting over 12,000 farmer-owners across multiple agricultural sectors. The subordinated notes carry a fixed interest rate of 6.75% for the first decade before resetting quarterly until maturity in 2041. The transaction was facilitated by Piper Sandler & Co., with legal counsel provided by McDermott Will & Emery and Dorsey & Whitney, LLP. American AgCredit serves diverse agricultural sectors including beef production, vineyards, tree fruits, field crops, dairies, and forest products across multiple western states. The cooperative emphasizes its role in financing rural growth while offering investors a stake in the long-term profitability of U.S. agriculture.