Home Properties extends loans, increases revolver to $450 million

By Angela McDaniels

Tacoma, Wash., Aug. 22 - Home Properties, Inc. amended its credit agreement on Monday, increasing the amount of the revolving credit facility to $450 million from $275 million.

The revolver's maturity date was extended to Aug. 18, 2017 from Dec. 8, 2015, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement also includes a $250 million term loan. It has been extended to Aug. 18, 2018 from Dec. 8, 2016.

Manufacturers and Traders Trust Co. and U.S. Bank NA are the joint lead arrangers and joint bookrunners. Manufacturers and Traders Trust continues to act as administrative agent.

There are nine additional lenders: RBS Citizens, NA, Bank of America, NA, Capital One, NA, PNC Bank, NA, JPMorgan Chase Bank, NA, Royal Bank of Canada, Wells Fargo Bank, NA, Branch Banking and Trust Co. and First Niagara Bank, NA.

The interest rates, terms and conditions for the credit agreement remain the same as before.

The current interest rate is Libor plus 115 basis points, and the annual facility fee on the revolver is 17.5 bps.

Home Properties has entered into interest rate swap agreements that effectively convert the variable Libor portion of the term loan to a fixed rate of 0.685% plus the applicable margin through the original term of Dec. 8, 2016.

The revolver continues to have a one-year extension at Home Properties' option and a $20 million sublimit for letters of credit.

As of Monday, $39.5 million was outstanding under the revolver, and letters of credit for $5.32 million were outstanding.

David Gardner, Home Properties executive vice president and chief financial officer, said in a news release 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."

Home Properties is a Rochester, N.Y.-based apartment real estate investment trust.

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