Farmland PartnersInc. closed $106 million of term loans, as well as its previously announcedacquisition of a 7,400-acrefarm in Louisiana for $31.8 million in cash.
In late March, five wholly owned subsidiaries of Farmland's operatingpartnership, Farmland Partners Operating Partnership LP, entered into a definitiveloan agreement with MetropolitanLife Insurance Co. for an aggregate of $127.0 million of term loans.
Farmland said April 4 that the term loans comprise a 10-year$90 million loan with an interest rate of three-month LIBOR plus 1.75% and a 10-year$16.0 million loan with an interest rate of three-month U.S. Treasury plus 1.80%.
The company will use the proceeds of the term loans to repayexisting debt, including amounts outstanding under the existing term loan agreementwith MSD FPI Partners LLC. The proceeds will also be used to acquire additionalproperties, including the Louisiana property purchase, and for general corporatepurposes.