FORT WORTH, Texas, June 11, 2021 /PRNewswire/ -- Ag Resource Management (ARM), one of the nation's top providers of agricultural lending and risk management services, announced that it successfully closed on the first securitization of its type in the agriculture industry. The 144A offering of $225 million crop loan backed notes serves as a milestone for ARM and the industry by accessing new sources of financing for ARM's crop loan product. Guggenheim Securities, LLC acted as sole structuring advisor and sole bookrunner.
"The past decade has been a challenging one for agriculture. Farmers need crop collateral solutions that work in a manner conducive to their success," said ARM's Chief Executive Officer, John Hoffman. He added, "Here at ARM, we are far from the norm. ARM is simply the smart choice for any farmer."
The master trust securitization allows ARM to match fund its obligation to its farmers' needs and to enable better execution, which will in turn allow further reach and more competitive capital solutions for the farming community.
"The successful completion of this inaugural asset-backed security transaction represents a significant milestone for Ag Resource Management in opening access to new sources of efficient capital that enables us to better serve the financing needs of farmers and agribusiness," said ARM Chief Financial Officer and President of Capital Markets Rasool Alizadeh.
"Ag Resource Management's goal has always been to keep farmers farming. It is a privilege for Guggenheim Securities to bring ARM to the debt capital markets through an innovative asset-backed security that helps ARM connect and partner with farmers across the country while also meeting the needs of the investor community," said Cory Wishengrad, Head of Fixed Income for Guggenheim Securities.
The Secured Notes and the related note guarantees were offered in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to non-U.S. persons in accordance with regulations under the Securities Act. The Exchangeable Notes and the related note guarantees were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Notes, the related note guarantees and any shares of common stock issuable upon exchange of the Exchangeable Notes have not been, and will not be, registered under the Securities Act or any state securities laws. The Notes, the related note guarantees and any such shares may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.
About Ag Resource Management
Founded in 2009, Ag Resource Management (ARM) is a specialty finance company bringing financial and risk management solutions to farmers and agribusinesses. Our teams are highly specialized in agricultural finance and crop insurance. We combine that with proprietary lending technology and a deep understanding of crop agriculture to build a customized strategy for every farming operation. It started as just one office in the Louisiana Delta, and now, headquartered in Fort Worth, Texas, ARM's footprint has expanded to serve customers from 29 field locations in 18 states. They are led by experienced leaders in the agriculture industry who are committed to every operation's growth and success.
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SOURCE Ag Resource Management