Home Properties Inc
) declared that it has revised and restated its unsecured line of
credit agreement. This real estate investment trust has increased
the amount of revolving credit from $275 million to $450 million.
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The maturity date of the revolving credit has also been extended
to Dec 8, 2013 from Aug 18, 2013. Moreover, the maturity date
might be extended further for an additional period of one year,
if required. Additionally, the company extended the maturity date
of the existing $250 million term-loan from Dec 8, 2016 to Aug
Home Properties also announced that the rates, terms and
conditions for the credit facility would remain unchanged from
the previous agreement. Further, under the credit facility, the
interest rates are fixed at a mark up over LIBOR and a facility
fee. Moreover, both the LIBOR margin and annual facility fee are
dependent on the company's overall leverage ratio. Additionally,
as per the current leverage ratio of Home Properties, the LIBOR
margin is 1.15% and the annual facility fee is 0.175%.
The joint lead arrangers and joint book runners for the offering
are Manufacturers and Traders Trust Company and U.S. Bank
National Association. Moreover, Manufacturers and Traders Trust
Company would continue to work as Administrative Agent.
Further, there are nine additional lenders for this offering that
comprise JPMorgan Chase Bank, N.A., a subsidiary of
JPMorgan Chase & Co
), Bank of America, N.A., a subsidiary of
Bank of America Corporation
), PNC Bank, National Association, a subsidiary of
The PNC Financial Services Group, Inc.
), RBS Citizens, N.A., Capital One, N.A., Royal Bank of Canada,
Wells Fargo Bank, National Association, Branch Banking and Trust
Company and First Niagara Bank, N.A.
This strategic move is expected to enhance Home Properties
financial flexibility and its ability to use unsecured debt for
business purposes. Moreover, it would improve the company's
liquidity position, thereby positioning it favorably to pursue
Home Properties currently carries a Zacks Rank #3 (Hold).