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Up to $125m
Gladstone Land Corporation (Nasdaq:LAND) announced today that it increased its overall borrowing capacity by $75.0 million, or 150% in connection with its execution of a loan agreement with Metropolitan Life Insurance Company for a new credit facility of up to $125.0 million, consisting of a $100.0 million long-term note payable and a $25.0 million revolving equity line of credit.
Among other changes and notable items, under the Credit Facility:
– the aggregate borrowing capacity increased by $75.0 million, to $125.0 million;
– the maturity date of the company’s prior long-term mortgage was extended by three years to 2029, and the initial interest rate on the mortgage remained at 3.5%;
– the maturity date of the cmpany’s prior revolving line of credit was extended by seven years to 2024; and
– the initial interest rate on the company’s prior revolving line of credit was reduced by 50 bps, to 2.75%.
The Credit Facility replaces the prior note payable and revolving line of credit with MetLife, and a portion of the proceeds from the Credit Facility will be used to repay amounts owed under these borrowings. The Company intends to utilize the remaining availability under the Credit Facility to acquire additional farmland in the United States.
“We are very upbeat about the additional capital that is now available to our company, and we are eager to put it to use by acquiring more farmland. We are also pleased to further our relationship with MetLife, a firm with substantial experience and expertise in financing farmland. We are now in a good position to significantly increase our portfolio of farmland.” said David Gladstone, Chief Executive Officer of the company.
Gladstone Land is seeking to be a real estate investment trust that pays monthly dividends to its stockholders, and the company intends to report the current value of its farmland on a quarterly basis. Gladstone Land invests in farmland located in major agricultural markets in the United States that it leases to corporate and independent farmers. The company currently owns 6,000 acres on 21 farms in 5 different states across the U.S., appraised at an aggregate value of approximately $120 million.
Its acreage is predominantly concentrated in locations where its tenants are able to grow row crops, such as berries and vegetables, which are planted and harvested annually or more frequently, as well as more permanent crops, such as blueberries. The company also may acquire property related to farming, such as storage facilities utilized for cooling crops, processing plants, packaging facilities and distribution centers.
