Farmland Partners Inc. Announces Closing of Public Offering of Preferred Stock and Full Exercise of Underwriters' Option to Purchase Additional Shares
DENVER, Aug. 17, 2017 /PRNewswire/ -- Farmland Partners Inc. (the "Company") (NYSE: FPI) today announced that it has closed its previously announced underwritten public offering of 6,037,500 shares of its newly designated 6.00% Series B participating preferred stock (the "Series B Participating Preferred Stock"), which included 787,500 shares pursuant to the full exercise of the underwriters' option to purchase additional shares. Net proceeds from the offering were approximately $144.2 million, after deducting the underwriting discount and estimated offering expenses payable by the Company.
The shares of Series B Participating Preferred Stock have been approved for listing on the New York Stock Exchange under the symbol "FPI PR B." The Company expects trading to commence on August 18, 2017.
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 served as joint book-running managers for the offering. Morrison & Foerster LLP served as legal counsel for the Company. Latham & Watkins LLP served as legal counsel to the underwriters.
The offering was 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 final prospectus supplement relating to the offering was filed by the Company with the SEC on August 10, 2017.
Copies of the final prospectus supplement and accompanying prospectus related to the offering may be obtained 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: email@example.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.
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.
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