Farmland Partners Inc. announced today (4/4/2016) that it entered into a loan agreement with Metropolitan Life Insurance Company which provides up to a total of $127 million of term loans.
FPI 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 3-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.
“We are pleased to announce our new relationship with one of the nation’s largest agricultural lenders,” said Paul Pittman, CEO of FPI. “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.”
Additionally, FPI 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. “Our third largest acquisition agreement to date is comprised of roughly 7,400 contiguous, irrigated acres, nearly all of which have been precision leveled. A substantial amount of acreage will be dedicated to growing rice, meaning this transaction will further diversify our portfolio by not only geography, but also crop type,” said Paul Pittman, CEO of Farmland Partners.