By Lisa Kerner
Charlotte, N.C., Aug. 27 – Farmland Partners Inc. issued a $20.7 million three-year interest-only note to the Federal Agricultural Mortgage Corp. under a $30 million secured note purchase facility.
The note has a fixed interest rate of 2.4%, and the facility may be upsized upon approval of both parties, according to a news release.
Each note will be secured by mortgage loans on agricultural real estate owned by Farmland Partners.
The issuance is expected to settle on Sept. 5.
Farmland Partners expects to use the proceeds to acquire additional farmland through wholly owned property-owning subsidiaries of its operating partnership and for general corporate purposes.
Denver-based Farmland Partners is a real estate investment trust that owns and acquires row crop farmland.
| Issuer: | Farmland Partners Inc.
|
| Issue: | Interest-only secured note
|
| Amount: | $20.7 million
|
| Coupon: | 2.4%
|
| Maturity: | Three years
|
| Purchaser: | Federal Agricultural Mortgage Corp.
|
| Pricing date: | Aug. 27
|
| Settlement date: | Sept. 5
|
| Distribution: | Private placement
|
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