Home Properties Completes $150 Million Private Placement Bond Offering

Published on Monday, 19 December 2011 15:11 Written by TradersHuddle Staff

ROCHESTER, N.Y., Dec. 19, 2011 /PRNewswire/ -- Home Properties, Inc. (NYSE: HME) today announced that it completed the issuance of $150 million of unsecured Senior Guaranteed Notes.

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"Today's Notes issuance is one of a series of actions the Company has taken to further strengthen its capital structure and provide additional balance sheet flexibility for our business operations," said David P. Gardner, Home Properties Executive Vice President and Chief Financial Officer.

The Notes were offered in a private placement in two series:  $90 million with a seven-year term due December 19, 2018 at 4.46% (Series A) and $60 million with a ten-year term due December 19, 2021 at 5.00% (Series B).

Proceeds from the sale of the Notes will be used to pay off a mortgage of approximately $83 million on the Company's Mount Vernon Square Apartments, as well as repay other existing debt and for general corporate purposes, which may include the financing of acquisitions, development or redevelopment projects.

The Sole Bookrunner and Lead Placement Agent was Bank of America Merrill Lynch and the Co-Placement Agent was Manufacturers and Traders Trust Company.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This release contains forward-looking statements. Although the Company believes expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved.  Factors that may cause actual results to differ include general economic and local real estate conditions, weather and other conditions that might affect operating expenses, the timely completion of repositioning and new development activities within anticipated budgets, the actual pace of future acquisitions and dispositions, and continued access to capital to fund growth.

Home Properties is a publicly traded apartment real estate investment trust that owns, operates, develops, acquires and rehabilitates apartment communities primarily in selected Northeast and Mid-Atlantic markets. Currently, Home Properties owns and operates 124 communities containing 41,909 apartment units.  For more information, visit Home Properties' website at homeproperties.com.

SOURCE Home Properties, Inc.