DENVER, Aug. 10, 2017 /PRNewswire/ -- Farmland Partners
Inc. (NYSE: FPI) (the "Company") today announced that it has
priced its underwritten public offering of 5,250,000 shares of its
newly designated 6.00% Series B participating preferred stock (the
"Series B Participating Preferred Stock") at a public offering
price of $25.00 per share, for gross
proceeds of approximately $131.3
million, before deducting underwriting discounts and
estimated offering expenses payable by the Company. Shares of
Series B Participating Preferred Stock have an initial liquidation
preference of $25.00 per share.
Investors in the Series B Participating Preferred Stock may
potentially benefit from farmland value appreciation in the 17
states in which the Company owns farmland as of June 30, 2017, as determined by the "Farm Real
Estate, Average Value per Acre" contained in the annual
agricultural land value summary released by the National
Agricultural Statistics Service, the Agricultural Statistics Board
and the United States Department of Agriculture.
The offering is expected to close on August 17, 2017, subject to customary closing
conditions. The Company has granted the underwriters a 30-day
option to purchase up to an additional 787,500 shares of Series B
Participating Preferred Stock at the public offering price less
underwriting discounts and commissions. The Company intends
to apply to list the shares of Series B Participating Preferred
Stock on the New York Stock Exchange under the symbol "FPI PR B."
If the application is approved, the Company expects trading to
commence 30 days after initial delivery of the shares of Series B
Participating Preferred Stock.
The Company will contribute the net proceeds from the offering
to Farmland Partners Operating Partnership, LP, its operating
partnership (the "Operating Partnership"), in exchange for a number
of newly designated series B participating preferred units of
limited partnership interest in the Operating Partnership equal to
the number of shares sold in the offering. The Operating
Partnership intends to use the net proceeds from the offering for
future farmland acquisitions in accordance with the Company's
investment strategy and for general corporate purposes.
Raymond James and Jefferies are
serving as joint book-running managers for the offering. Morrison
& Foerster LLP is serving as legal counsel for the
Company. Latham & Watkins LLP is serving as legal counsel
to the underwriters.
The offering is being made pursuant to the Company's shelf
registration statement on Form S-3 that was declared effective by
the Securities and Exchange Commission (the "SEC") on May 14, 2015. A preliminary prospectus supplement
relating to the offering was filed by the Company with the SEC on
August 7, 2017. This press release
shall not constitute an offer to sell or a solicitation of an offer
to buy, nor shall there be any sale of, these shares in any state
in which such offer, solicitation or sale would be unlawful, prior
to registration or qualification under the securities laws of any
such state.
Copies of the final prospectus supplement and accompanying
prospectus related to the offering may be obtained, when available,
by visiting EDGAR on the SEC website at www.sec.gov or from
Raymond James & Associates,
Inc., 880 Carillon Parkway, St.
Petersburg, FL 33716, telephone: (800) 248-8863, email:
prospectus@raymondjames.com and Jefferies LLC, Attention: Equity
Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor,
New York, NY 10022, telephone:
(877) 821-7388, email: Prospectus_Department@Jefferies.com.
About Farmland Partners Inc.
Farmland Partners Inc. is an internally managed real estate
company that owns and seeks to acquire high-quality North American
farmland and makes loans to farmers secured by farm real estate. As
of the date of this release, the Company owns over 154,000 acres in
Alabama, Arkansas, California, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North
Carolina, South Carolina,
South Dakota, Texas and Virginia. The Company elected to be taxed as a
real estate investment trust, or REIT, for U.S. federal income tax
purposes, commencing with the taxable year ended December 31, 2014.
Forward-Looking Statements
This press release includes "forward-looking statements,"
including with respect to the underwritten public offering and the
Company's proposed use of proceeds. Forward-looking statements are
subject to known and unknown risks and uncertainties, many of which
may be beyond our control. We caution you that the forward-looking
information presented in this press release is not a guarantee of
future events, and that actual events may differ materially from
those made in or suggested by the forward-looking information
contained in this press release. In addition, forward-looking
statements generally can be identified by the use of
forward-looking terminology such as "may," "plan," "seek,"
"comfortable with," "will," "expect," "intend," "estimate,"
"anticipate," "believe" or "continue" or the negative thereof or
variations thereon or similar terminology. Any forward-looking
information presented herein is made only as of the date of this
press release, and we do not undertake any obligation to update or
revise any forward-looking information to reflect changes in
assumptions, the occurrence of unanticipated events, or
otherwise.
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SOURCE Farmland Partners Inc.