ST. PAUL, Minn., April 26, 2016 – St. Paul-based AgriBank today announced that, on July 15, 2016, it will redeem all of the outstanding principal amount of its $500 million 9.125 percent subordinated notes due July 2019.
On March 10, 2016, the Farm Credit Administration (FCA) Board of Directors publically announced the adoption of a final rule modifying certain regulatory capital requirements for Farm Credit System Banks, including AgriBank. The terms of AgriBank’s subordinated notes provide that, at any time following FCA notification of certain changes to the Bank’s regulatory capital requirements, the subordinated notes are redeemable in whole on any interest payment date. The next interest payment date is July 15, 2016.
On April 20, 2016, the AgriBank board voted to redeem the subordinated notes at a redemption price of 100 percent of the principal amount of the subordinated notes together with accrued and unpaid interest up to, but excluding, the redemption date (less any applicable tax withholding as required by law). The fiscal agent for the redemption is The Bank of New York Mellon Trust Company, N.A.
AgriBank is one of the largest banks within the national Farm Credit System, with nearly $100 billion in total assets. Under the Farm Credit System’s cooperative structure, AgriBank is primarily owned by 17 affiliated Farm Credit Associations. The AgriBank District covers America’s Midwest, a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. With about half of the nation’s cropland located in the AgriBank District, and nearly 100 years of experience, the Bank and its Association owners have significant expertise in providing financial products and services for rural communities and agriculture. For more information, please visit www.AgriBank.com.
Any forward-looking statements in this press release are based on current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from expectations due to a number of risks and uncertainties. More information about these risks and uncertainties is contained in AgriBank’s annual report. The Bank undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.