Farmland’s 6% series B participating preferreds list on NYSE

By Stephanie N. Rotondo

Seattle, Aug. 18 – Farmland Partners Inc.’s $150.94 million of 6% series B participating preferred stock began trading on the New York Stock Exchange on Friday.

The ticker symbol is “FPIPrB.”

The company initially sold $131.25 million of the preferreds on Aug. 10. On Aug. 17, the company said its $19,687,000 over-allotment option had been exercised in full.

Raymond James & Associates Inc. and Jefferies LLC were the bookrunners.

The preferreds have an initial liquidation preference of $25.00 a share. That amount could be increased by an additional farmland value appreciation value (FVA), subject to certain caps, until Sept. 30, 2024.

The dividends will be cumulative and payable on the last day of March, June, September and December. The issue becomes redeemable after Sept. 30, 2021.

Prior to Sept. 30, 2024, no dividends will accrue or be paid on any FVA amount.

If a redemption occurs prior to Sept. 30, 2024, the redemption price will include a premium amount.

The company also has the option to convert the preferreds to common stock after Sept. 30, 2021. Holders also have a right to force a conversion upon a change of control.

In both cases, the conversion ratio will be based on the sum of par plus FVA, accrued dividends and a premium amount – if the conversion takes place before Sept. 30, 2024 – divided by the 10-day volume weighted average price of the company’s shares.

The Denver-based real estate investment trust plans to contribute proceeds to its operating partnership in exchange for series P participating preferred units. The partnership will use the funds for future acquisitions of farmland and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.