FREEHOLD, N.J., March 31, 2017 /PRNewswire/ -- UMH Properties, Inc. (NYSE: UMH), today announced that on March 28, 2017, it has entered into an amended and restated credit agreement to renew and expand its existing unsecured revolving credit facility. The new unsecured revolving credit facility (the "Facility") is syndicated with BMO Capital Markets ("BMO"), as sole lead arranger and sole book runner, and Bank of Montreal as administrative agent. The Facility provides for an increase from $35 million in available borrowings to $50 million in available borrowings with a $75 million accordion feature, bringing the total potential availability up to $125 million, subject to certain conditions. The maturity date of the Facility is March 27, 2020, with a one year extension option. Borrowings will bear interest at the Company's option of LIBOR plus 1.75% to 2.50% or BMO's prime lending rate plus 0.75% to 1.50%, based on the Company's overall leverage. Based on the Company's current leverage ratio, borrowings under the Facility will bear interest at LIBOR plus 2% or at BMO's prime lending rate plus 1%.
Samuel A. Landy, President and Chief Executive Officer commented, "We are very pleased to continue our long-term relationship with BMO and appreciate their continued support. Our renewed Facility will increase our liquidity and further strengthen the financial flexibility and balance sheet of our Company. This will position us to continue to capitalize on opportunities presented to us and to execute our growth strategy."
UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 106 manufactured home communities with approximately 19,300 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, and Michigan. In addition, the Company owns a portfolio of REIT securities.
Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are based on the Company's current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in the Company's annual report on Form 10-K and described from time to time in the Company's other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
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SOURCE UMH Properties, Inc.