By Lisa Kerner
Charlotte, N.C., Dec. 23 – Farmland Partners Inc. expanded its secured note purchase facility with the Federal Agricultural Mortgage Corp. to $150 million from $75 million.
In addition, under the facility Farmland issued a $30.9 million, three-year, 2.56% interest-only bond to Farmer Mac subsidiary Farmer Mac Mortgage Securities Corp., according to form 8-K filed with the Securities and Exchange Commission.
Bonds issued under this facility are secured by mortgage loans on agricultural real estate owned by Farmland that have an effective loan-to-value ratio of up to 60%.
This latest issue brings the total principal amount outstanding under the facility to $81.1 million, according to a news release.
On Dec. 17, Farmland issued to Farmer Mac a $13.4 million, three-year, interest-only bond with a fixed interest rate of 2.5%.
The company announced in October it had expanded its secured note purchase facility with the Farmer Mac to $75 million from $30 million.
Farmland also announced the closing of the previously announced acquisition of seven row crop farms in South Carolina for a revised purchase price of $27.5 million and the closing of the acquisition of a 1,300-acre farm in Arkansas for $3.3 million.
According to Farmland, this brings the company’s acquisition totals to roughly $128 million and 39,000 acres since the initial public offering in April, including $92 million and 22,000 acres in the fourth quarter.
Denver-based Farmland Partners is a real estate investment trust that owns and acquires row crop farmland.
| Issuer: | Farmland Partners Inc.
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| Issue: | Interest-only bond
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| Amount: | $30.9 million
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| Coupon: | 2.56%
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| Maturity: | Three years
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| Purchaser: | Farmer Mac Mortgage Securities Corp.
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| Settlement: | Dec. 22
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| Distribution: | Private placement
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