American Homes 4 Rent increases revolver to $800 million, adds lender

By Marisa Wong

Madison, Wis., Oct. 1 - American Homes 4 Rent announced that it amended its senior secured revolving credit facility to increase the borrowing capacity to $800 million from $500 million and extend the maturity date to Sept. 30, 2018.

The amendment also adds JPMorgan Chase Bank, NA as a lender.

American Homes' operating partnership, American Homes 4 Rent, LP, entered into the amendment with Wells Fargo Bank, NA as lead arranger and Wells Fargo and JPMorgan Chase Bank, NA as lenders on Sept. 30. The amendment is a supplement to the master loan and security agreement dated June 6 with Wells Fargo as lead arranger, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings under the amended facility bear interest at one-month Libor plus 275 basis points until March 2017 and, after that, at one-month Libor plus 312.5 bps.

The company also amended the tangible net worth covenant under the facility. The company's adjusted tangible net worth is required at all times to be at least 85% of its adjusted tangible net worth as of the amendment effective date plus 85% of the net proceeds of any additional equity capital raises completed on or after the amendment effective date.

In addition, the minimum liquidity covenant was modified to require the company at all times to maintain cash, cash equivalents and borrowing capacity under any credit facilities in an aggregate amount of at least $15 million, of which at least $7.5 million must be in cash and cash equivalents.

All other provisions and terms of the loan agreement remain the same, the filing noted.

The company said in a press release that it is currently in discussions with potential lending institutions and national rating agencies regarding other potential financing and securitization transactions.

American Homes 4 Rent is a real estate investment trust based in Agoura Hills, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.