DENVER, April 4, 2016 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company") today announced that it entered into a loan agreement with Metropolitan Life Insurance Company ("MetLife"), which provides up to a total of $127 million of term loans. The Company has closed on $106 million of term loans comprised of (i) a ten-year $90 million term loan with an interest rate of three-month LIBOR plus 1.75% and (ii) a ten-year $16.0 million term loan with an interest rate of three-month US Treasury plus 1.80%. The proceeds of the term loans will be used to repay existing debt, including amounts outstanding under the existing term loan agreement with MSD FPI Partners, LLC, to acquire additional properties, including the recently completed acquisition described below, and for general corporate purposes.
Additionally, the Company announced it has closed on its previously announced acquisition of a 7,400 acre farm in Louisiana for a purchase price of $31.8 million in cash.
"We are pleased to announce our new relationship with one of the nation's largest agricultural lenders," said Paul Pittman, CEO of Farmland Partners Inc. "After a busy first quarter in which we closed on acquisitions of over 32,700 acres for total consideration of nearly $240 million, our new relationship with MetLife will allow us to continue to put capital to work toward the numerous opportunities in our pipeline that we believe will offer attractive returns to our investors."
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. The Company's portfolio is comprised of 258 farms with an aggregate of 108,163 acres (including two farms totaling 487 acres under contract) in Arkansas, Colorado, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, Texas and Virginia. 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.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company's control. The Company faces many risks that could cause its actual performance to differ materially from the results contemplated by its forward-looking statements, including, without limitation, the risks related to our outstanding indebtedness, the risks related to leasing farmland to third-party tenants, including delays in executing new leases and failure to negotiate leases on terms that will enable the Company to achieve its expected returns. These forward-looking statements are based upon the Company's present expectations, but the events, expectations, intentions or prospects suggested by or reflected in these statements are not guaranteed to occur or be achieved, and you should not place undue reliance on such statements. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes, except as may be required by law. For a further discussion of these and other factors that could impact the Company's future results, performance or transactions, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and other documents filed by the Company with the Securities and Exchange Commission.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/farmland-partners-inc-announces-loan-agreement-with-metlife-and-closing-of-7400-acre-louisiana-farm-300245655.html
SOURCE Farmland Partners Inc.