MCLEAN, Va., May 12, 2014 (GLOBE NEWSWIRE) -- Gladstone Land Corporation (Nasdaq:LAND) (the "Company") 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 ("MetLife") for a new credit facility of up to $125.0 million (the "Credit Facility"), 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 Company'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. The Company has paid 15 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. Additional information can be found at www.GladstoneLand.com.
Certain statements in this press release, including the Company's ability to grow its portfolio and acquire additional farmland are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, the Company's ability to procure financing for investments; the duration of, or further downturns in, the current economic environment; the performance of its tenants; the impact of competition on its efforts to acquire properties, renew existing leases or re-lease real property; and significant changes in interest rates. Additional factors that could cause actual results to differ materially from those stated or implied by its forward-looking statements are disclosed under the caption "Risk Factors" of its Form 10-K for the fiscal year ended December 31, 2013, as filed with the SEC on February 24, 2014. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT: Gladstone Land Corporation, +1-703-287-5893
Source:Gladstone Land Corporation