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HomeBanc loans go uncommitted, covenants eased; stock temporarily delisted
By Lisa Kerner
Charlotte, N.C., Aug. 6 - HomeBanc Corp. and its subsidiary HomeBanc Mortgage Corp. amended their master repurchase agreement dated Oct. 31, 2006 and the Nov. 17, 2006 master loan agreement with JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.
The amendments provide that all loans made on or after July 31 will be made on an uncommitted basis. HomeBanc and its subsidiary will provide daily and weekly reports to JPMorgan regarding margin calls, liquidity position, operating budget and asset dispositions.
In addition, the amendments decrease the minimum liquidity requirement applicable to HomeBanc from $37.5 million to $20 million from June 1 through Aug. 6.
HomeBanc has been notified by the New York Stock Exchange that it has suspended HomeBanc's common stock (HMB) and its 10% series A cumulative redeemable preferred stock (HMB PR A), effective immediately based on the "abnormally low" trading price. The company's common stock closed at $0.30 on Aug. 3.
HomeBanc is an Atlanta-based mortgage banking business.
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