DENVER, Aug. 10, 2017 /PRNewswire/ -- Farmland Partners Inc. (NYSE: FPI) (the "Company") today announced that it has priced its underwritten public offering of 5,250,000 shares of its newly designated 6.00% Series B participating preferred stock (the "Series B Participating Preferred Stock") at a public offering price of $25.00 per share, for gross proceeds of approximately $131.3 million, before deducting underwriting discounts and estimated offering expenses payable by the Company. Shares of Series B Participating Preferred Stock have an initial liquidation preference of $25.00 per share. Investors in the Series B Participating Preferred Stock may potentially benefit from farmland value appreciation in the 17 states in which the Company owns farmland as of June 30, 2017, as determined by the "Farm Real Estate, Average Value per Acre" contained in the annual agricultural land value summary released by the National Agricultural Statistics Service, the Agricultural Statistics Board and the United States Department of Agriculture.
The offering is expected to close on August 17, 2017, subject to customary closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 787,500 shares of Series B Participating Preferred Stock at the public offering price less underwriting discounts and commissions. The Company intends to apply to list the shares of Series B Participating Preferred Stock on the New York Stock Exchange under the symbol "FPI PR B." If the application is approved, the Company expects trading to commence 30 days after initial delivery of the shares of Series B Participating Preferred Stock.
The Company will contribute the net proceeds from the offering to Farmland Partners Operating Partnership, LP, its operating partnership (the "Operating Partnership"), in exchange for a number of newly designated series B participating preferred units of limited partnership interest in the Operating Partnership equal to the number of shares sold in the offering. The Operating Partnership intends to use the net proceeds from the offering for future farmland acquisitions in accordance with the Company's investment strategy and for general corporate purposes.
Raymond James and Jefferies are serving as joint book-running managers for the offering. Morrison & Foerster LLP is serving as legal counsel for the Company. Latham & Watkins LLP is serving as legal counsel to the underwriters.
The offering is being made pursuant to the Company's shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission (the "SEC") on May 14, 2015. A preliminary prospectus supplement relating to the offering was filed by the Company with the SEC on August 7, 2017. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, these shares in any state in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of any such state.
Copies of the final prospectus supplement and accompanying prospectus related to the offering may be obtained, when available, by visiting EDGAR on the SEC website at www.sec.gov or from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716, telephone: (800) 248-8863, email: firstname.lastname@example.org and Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, telephone: (877) 821-7388, email: Prospectus_Department@Jefferies.com.
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 over 154,000 acres in Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina, South Dakota, 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.
This press release includes "forward-looking statements," including with respect to the underwritten public offering and the Company's proposed use of proceeds. 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.