ROCHESTER, N.Y., Sept. 1 /PRNewswire-FirstCall/ -- Home Properties (NYSE: HME) today announced it entered into a $175 million revolving line of credit agreement beginning September 1, 2009 for a two-year term expiring August 31, 2011 with an optional one-year extension. The new credit facility is an increase of $35 million over the maturing borrowing capacity of $140 million. Based on the Company's current corporate credit rating of 'BBB' (Triple B), the new credit facility interest rate ranges from 2.5% to 3.25% over the one-month LIBOR rate, increasing at higher levels of outstanding indebtedness, with a LIBOR floor of 1.5%. There are no material changes to the financial covenants from the previous facility with the exception of the maximum loan-to-value ratio on unsecured indebtedness which is now 50%, down from 60% in the prior agreement. The line of credit agreement will be available on the Company's Web site, http://www.homeproperties.com/, in the Investors section, under Financial Information/ Line of Credit Documents. Manufacturers and Traders Trust Company will continue to act as Administrative Agent. There are eight additional lenders: U.S. Bank National Association; RBS Citizens, N.A., d/b/a/ Charter One; Bank of Montreal; Chevy Chase Bank, a division of Capital One Bank, N. A.; PNC Bank National Association; First Niagara Bank; JPMorgan Chase Bank, N.A. and Tristate Capital Bank. Of the four lenders that participated in the prior facility, three are continuing their participation in the new line. "We were very pleased with the high level of interest among national and regional financial institutions in participating in the new credit facility," said David P. Gardner, Home Properties Executive Vice President and Chief Financial Officer. "This strong commitment enabled us to increase the line, providing additional liquidity and financial flexibility for our business." As of June 30, 2009, maturing debt remaining in 2009 was only $12.6 million. The Company is continuing to refinance mortgage loans maturing in 2009 through 2011. A cash flow schedule, also available on the Company's Investors Web page, was included in the second quarter 2009 supplemental information on page 28 and shows that after refinancing more than $200 million of 2010 maturities during the balance of 2009, the remaining loans maturing in 2010 will be approximately $125 million, with most of that due in May and the balance in October 2010. This press release contains forward-looking statements. Although the Company believes expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that may cause actual results to differ include general economic and local real estate conditions, the weather and other conditions that might affect operating expenses, the timely completion of repositioning and new development activities within anticipated budgets, the actual pace of future acquisitions and dispositions, and continued access to capital to fund growth. Home Properties is a publicly traded apartment real estate investment trust that owns, operates, develops, acquires and rehabilitates apartment communities primarily in selected Northeast, Mid-Atlantic and Southeast Florida markets. Currently, Home Properties operates 109 communities containing 37,539 apartment units. Of these, 36,389 units in 107 communities are owned directly by the Company; 868 units are partially owned and managed by the Company as general partner, and 282 units are managed for other owners. For more information, visit Home Properties' Web site at http://www.homeproperties.com/. DATASOURCE: Home Properties, Inc. CONTACT: David P. Gardner, Executive Vice President and Chief Financial Officer, +1-585-246-4113, or Charis W. Warshof, Vice President, Investor Relations, +1-585-295-4237 Web Site: http://www.homeproperties.com/

Copyright