UMH Properties, Inc. Announces A New $35 Million Revolving Credit Agreement
FREEHOLD, N.J., April 2, 2013
FREEHOLD, N.J., April 2, 2013 /PRNewswire/ -- UMH Properties, Inc. (NYSE: UMH)
today announced that on March 29, 2013, it has entered into a new $35 million
Unsecured Revolving Credit Facility (the "Facility") with Bank of Montreal
("BMO"). UMH has the ability to increase the borrowing capacity by an amount
not to exceed $15 million, representing a maximum aggregate borrowing capacity
of $50 million, subject to the obtaining of additional commitments. The
maturity date of the Facility is March 29, 2016 with a one year extension
available at the Company's option. Borrowings under the Facility can be used
for, among other things, acquisitions, working capital, capital expenditures,
and repayment of other indebtedness. Borrowings will bear interest at the
Company's option of LIBOR plus 2.00% to 2.75% or BMO's prime lending rate plus
1.00% to 1.75%, based on the Company's overall leverage. The Company will pay
a fee on the unused commitment amount of up to 0.35% per annum.
The Facility contains certain financial and other covenants typical for this
type of Facility. The Company's ability to borrow under the Facility is
subject to its compliance with the covenants and other restrictions on an
ongoing basis. The principal financial covenants limit the Company's level of
secured and unsecured indebtedness and additionally require the Company to
maintain certain debt coverage ratios.
Samuel A. Landy, President and Chief Executive Officer commented, "We are very
pleased to start a long-term relationship with BMO and appreciate their
support. Our new Facility will further strengthen the financial flexibility
and balance sheet of our company enabling us to continue to capitalize on
opportunities presented to us and to execute our growth strategy."
UMH, a publicly-owned REIT, owns and operates sixty-seven manufactured home
communities containing approximately 12,500 developed home sites. These
communities are located in New Jersey, New York, Ohio, Pennsylvania,
Tennessee, Indiana and Michigan. In addition, the Company owns a portfolio of
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. 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. Factors and risks 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.
SOURCE UMH Properties, Inc.
Contact: Susan Jordan, 732-577-9997
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