Home Properties gets $275 million revolver, new $250 million term loan

By Aleesia Forni

Columbus, Ohio, Dec. 12 - Home Properties, Inc. entered into an amended and restated $275 million unsecured revolving line of credit and a new $250 million five-year unsecured term loan, according to a company press release on Monday.

The $275 million revolver replaces the company's prior $175 million facility.

Based on the company's current leverage ratio, the revolver's margin over Libor is 130 basis points, with an annual facility fee of 25 bps.

The unsecured five-year term loan also is priced at 130 bps over Libor.

This line of credit is for an initial four-year term and may be extended at the company's option for an additional one-year period.

"We were very pleased with the high level of interest in participating in the new credit facility and term loan," chief financial officer David P. Gardner said in the release.

"Due to the strong response, we were able to lengthen the term of the prior line of credit and increase the size of both loans from our original expectations, at favorable pricing. Proceeds will provide additional liquidity and financial flexibility for our business needs with less reliance on secured debt, further strengthening our credit profile."

Proceeds from the facilities were used in part to pay down the line of credit and pay off the company's $140 million 4.125% exchangeable senior notes.

Proceeds will also be used to fund acquisitions, repay indebtedness, upgrade owned properties and for new development activities.

Manufacturers and Traders Trust Co. and U.S. Bank NA are joint lead arrangers and joint bookrunners.

Manufacturers and Traders Trust Co. will act as administrative agent. The nine additional lenders are Bank of America NA, PNC Bank N, RBS Citizens NA, Capital One NA, JPMorgan Chase Bank NA, Royal Bank of Canada, First Niagara Bank NA, Branch Banking and Trust Co. and Wells Fargo Bank NA.

Bank of America NA, PNC Bank NA and RBS Citizens NA serve as co-documentation agents.

U.S. Bank NA is syndication agent.

Of the eight lenders that participated in the prior facility, seven are continuing their participation in the new debt.

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

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