UPDATE 1- Home Properties enters into $175 mln credit facility
Sept 1 (Reuters) - Real estate investment trust Home Properties Inc (HME.N) said it has entered into a new $175 million revolving line of credit with its lenders.
The new credit facility, which will be for a two-year term with an optional one-year extension, is an increase of $35 million over the maturing borrowing capacity of $140 million.
Home Properties said it expects to refinance loans of about $125 million maturing in 2010, after refinancing $200 million of fiscal 2010 maturities during the balance of 2009.
Most of U.S. commercial real estate, which has been suffering from a severe lack of available credit, is still fighting to get over the longest and deepest recession since the Great Depression.
Interest rate for the line of credit will range between 2.5 to 3.25 percent over the one-month LIBOR rate, increasing at higher levels of outstanding indebtedness, with a LIBOR floor of 1.5 percent.
Shares of the Rochester, New York-based REIT closed down more than 3 percent at $36.74 Tuesday on the New York Stock Exchange. (Reporting by Biswarup Gooptu in Bangalore; Editing by Maju Samuel)
