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Home Properties Inc. (HME - Snapshot Report) declared that it has revised and restated its unsecured line of credit agreement. This real estate investment trust has increased the amount of revolving credit from $275 million to $450 million.

The maturity date of the revolving credit has also been extended to Dec 8, 2013 from Aug 18, 2013. Moreover, the maturity date might be extended further for an additional period of one year, if required. Additionally, the company extended the maturity date of the existing $250 million term-loan from Dec 8, 2016 to Aug 18, 2018.

Home Properties also announced that the rates, terms and conditions for the credit facility would remain unchanged from the previous agreement. Further, under the credit facility, the interest rates are fixed at a mark up over LIBOR and a facility fee. Moreover, both the LIBOR margin and annual facility fee are dependent on the company’s overall leverage ratio. Additionally, as per the current leverage ratio of Home Properties, the LIBOR margin is 1.15% and the annual facility fee is 0.175%.

The joint lead arrangers and joint book runners for the offering are Manufacturers and Traders Trust Company and U.S. Bank National Association. Moreover, Manufacturers and Traders Trust Company would continue to work as Administrative Agent.

Further, there are nine additional lenders for this offering that comprise JPMorgan Chase Bank, N.A., a subsidiary of JPMorgan Chase & Co. (JPM - Analyst Report), Bank of America, N.A., a subsidiary of Bank of America Corporation (BAC - Analyst Report), PNC Bank, National Association, a subsidiary of The PNC Financial Services Group, Inc. (PNC - Analyst Report), RBS Citizens, N.A., Capital One, N.A., Royal Bank of Canada, Wells Fargo Bank, National Association, Branch Banking and Trust Company and First Niagara Bank, N.A.

This strategic move is expected to enhance Home Properties financial flexibility and its ability to use unsecured debt for business purposes. Moreover, it would improve the company’s liquidity position, thereby positioning it favorably to pursue investment opportunities.

Home Properties currently carries a Zacks Rank #3 (Hold).

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