MCLEAN, VA - Gladstone Land Corporation has expanded its secured note purchase facility with Federal Agricultural Mortgage Corporation ("Farmer Mac”), growing from $75 million to $125 million. The deal, through one of its wholly-owned subsidiaries, also extends its current terms by two years, to December 11, 2018.
"We are pleased to build on our relationship with Farmer Mac, as they offer some of the best financing terms available," said David Gladstone, President and CEO of the Company. "This expansion and extension will provide us with additional flexibility as we continue our due diligence on the list of farms we're looking to buy, and we believe the attractive rates will allow us to strengthen our margins and enable us to pass on some of the savings to our stockholders in the form of distributions."
A press release on the matter stipulates that bonds issued under this newly expanded facility are secured by mortgage loans on agricultural real estate owned by the company, and have an effective loan-to-value ratio of up to 60% of the underlying agricultural real estate.
Since the beginning of 2016, Gladstone has purchased several news farms, including 453 Acres in California for about $15.5 million (about $34,200 per acre), and 6,190 Acres in Colorado for $25 million (about $3,117 per acre). Stay tuned for more coverage as this farmland powerhouse continues to grow its portfolio.
