Home Properties has entered into an amendment to its 9 December 2011 amended and restated unsecured line of credit agreement, increasing the amount of the revolving line to USD450m from USD275m.
The maturity date of the line was extended from 8 December 2015 to 18 August 2017, and may be extended at the company's option for an additional one-year period.
The existing USD250m term loan has been extended until 18 August 2018 from 8 December 2016.
"There was a very high level of interest in participating in the increased credit facility," says David P Gardner, Home Properties executive vice president and chief financial officer. "We were very pleased that all the participants in the original line raised the amount of their commitment. The additional liquidity enhances our financial flexibility and ability to use unsecured, rather than secured, debt for business needs, further strengthening the company's credit profile."
Rates, terms and conditions for the credit facility remain the same as in the prior agreement. Borrowing rates under the credit facility float at a margin over LIBOR plus a facility fee, both of which are priced off a grid that is tied to the company's overall leverage ratio. Based on the company's current leverage ratio, the LIBOR margin is 1.15 per cent and the annual facility fee is 0.175 per cent.