Gladstone Land gets upsized $125 million long-term note and revolver

By Susanna Moon

Chicago, May 12 - Gladstone Land Corp. said it obtained a new credit facility of up to $125 million, consisting of a $100 million long-term note and a $25 million revolving equity line of credit.

The company upsized its overall borrowing capacity by $75 million, or 150%, for the loan agreement with Metropolitan Life Insurance Co., according to a press release.

The company's long-term mortgage was extended by three years to 2029, and the initial interest rate on the mortgage remains 3.5%, the release noted.

The maturity date of the company's revolving line of credit was extended by seven years to 2024, and the initial interest rate on the company's revolver was reduced by 50 basis points to 2.75%.

The facility replaces the previous note payable and revolving line of credit with MetLife, and some proceeds from the facility will be used to repay debt under these borrowings, the company said.

The company plans to use the remaining availability under the 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," David Gladstone, chief executive officer of the company, said in the press release.

"We are now in a good position to significantly increase our portfolio of farmland."

Gladstone Land is seeking to be a real estate investment trust that pays monthly dividends to its stockholders. The company is based in McLean, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.