Five wholly owned subsidiaries of Farmland Partners Inc.'s operating partnership, FarmlandPartners Operating Partnership LP, entered into a definitive loan agreement withMetropolitan Life Insurance Co. for an aggregate of $127.0 million of term loans.
Additionally, the company appointed John Conrad as an independentdirector to its board of directors. Conrad succeeds Michael Christodolou, who resigned.
The loan facility, acquired March 29, comprises a $90 millionterm loan, a $21.0 million term loan and a $16.0 million term loan. Each term loanis due to mature March 29, 2026, and is secured by first-lien mortgages on certainof the company's properties.
The proceeds of loans are intended to be used to repay existingdebt, to acquire additional properties and for general corporate purposes, accordingto a March 31 filing.
On March 29, the company terminated and repaid all outstandingamounts under its existing term loan agreement with MSD FPI Partners LLC. It didnot incur any early termination penalties in connection with this termination otherthan customary LIBOR Breakage costs.
The $90 million term loan will initially bear interest at a rateof 2.38% per year until June 29. Interest on the loan is payable in cash semiannuallyand accrues at a floating rate that will be adjusted quarterly. Subject to certainconditions, the borrower will have the option, at any time, to have all or any portionof the unpaid balance of loan bear interest at a fixed rate, which initially willbe established by the lender, in its sole discretion, and may be adjusted from timeto time.
Interest on the $21 million and $16 million term loans is payablein cash semiannually and accrues at an initial rate of 2.66% per year. The ratemay be adjusted by the lender on each of March 29, 2019; March 29, 2022; and March29, 2025.