Closing of Preferred Stock Capital Transaction
For Immediate Release
Chastity Valvick, Sr. Communications Consultant
[email protected] or (507) 995-5667
Compeer Financial Announces Closing of Preferred Stock
Sun Prairie, Wis., (June 8, 2021) – Compeer Financial, a member-owned Farm Credit cooperative, today announced the closing of its private offerings on a total of $100 million in perpetual preferred stock to augment its capital position. This transaction is in addition to the organization’s subordinated debt announcement on May 17, 2021.
“We are again pleased to announce this opportunistic capital raise to support the continued growth of our clients in agriculture and rural America,” said Rod Hebrink, president and CEO of Compeer Financial. “Raising perpetual capital at historically low interest rates demonstrates our prudent risk management by locking in long-term capital at attractive rates, much like we counsel our clients. This capital will support the long-term growth of our cooperative and serve as a reliable source of capital through fluctuations in the industry.”
The preferred stock ranks junior to Compeer’s recently issued subordinated debt, but is similar to the organization’s existing preferred stock issued in 2013. The rate on the preferred stock is 4.875% and is a perpetual security, meaning it has no maturity date and will qualify as Tier 1 capital for Compeer.
Compeer Financial intends to use the net proceeds of the offering to reduce borrowings from AgriBank and provide more capacity to support the capital needs of the organization’s clients.
Collectively, Compeer has raised $300 million of capital from over 30 different institutional investors at an initial weighted average cost of 3.7%.
“The combined issuances of capital demonstrate a broad set of investors understand the value our member-owners provide to the food chain and more broadly in rural America,” added Hebrink. “It also demonstrates investor confidence in our organization and our ability to successfully meet the financial needs of our clients in agriculture.”
Piper Sandler & Co. acted as the sole initial purchaser.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of either prospectus supplement or the shelf registration statement or prospectus relating thereto.
Any forward-looking statements 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 our 2020 Annual Report. We undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $24.9 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the Upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America, while providing personalized service and expertise to clients and the agriculture industry.
Compeer Financial is the third largest cooperative of the Farm Credit System, a nationwide network of lending institutions supporting agriculture and rural communities with reliable, consistent credit and financial services. Learn more about Compeer Financial.