Farmland Partners Announces Loan Agreement with Rabo AgriFinance
DENVER, Dec. 18, 2017 /PRNewswire/ — Farmland Partners Inc. (NYSE: FPI) (the “Company”) today announced that it has executed an agreement with Rabo AgriFinance, LLC (“Rabo AgriFinance”) to provide the Company with up to $80.0 million in term loan financing in two tranches. The first tranche, a $66.4 million term loan that has funded, matures in 10 years and bears interest at a floating rate of one month LIBOR plus 1.70%. Within 60 days of the credit agreement, the Company will be required to fix the base interest rate on 50% of the loan balance with an interest rate swap agreement. The Company also secured the option for an additional $13.6 million of term loan financing with Rabo AgriFinance, which will be available until January 1, 2019, subject to the Company providing adequate collateral and meeting certain other conditions.
“We are pleased to have secured attractive, long-term financing and to have developed a new relationship with one of the nation’s largest agricultural lenders,” said Paul Pittman, CEO of the Company. “Between this financing and the Series B Participating Preferred issue, we have meaningfully expanded and diversified the Company’s sources of capital.”
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of the date of this release, the Company owns or has under contract over 160,000 acres in 17 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota, Texas and Virginia. We have approximately 30 crop types and 125 tenants. The Company elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes, commencing with the taxable year ended December 31, 2014.
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Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of the federal securities laws, including, without limitation, statements with respect to the entry into a rate swap agreement and the availability of the additional $13.6 million of borrowing capacity. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
SOURCE Farmland Partners Inc.