UMH Properties Inc. agreed to renew and expand its existing unsecured revolving credit facility.
Under the agreement, UMH could tap into as much as $125 million in available funds, subject to certain conditions. The facility, which will mature March 27, 2020, with a one-year extension option, facilitates available borrowings of $50 million, up from $35 million, with an accordion feature worth $75 million.
The interest rate for the borrowings is LIBOR plus 1.75% to 2.50% or BMO's prime lending rate plus 0.75% to 1.50%, depending on UMH's leverage ratio.
BMO Capital Markets is the sole lead arranger and sole book runner, while Bank of Montreal is the administrative agent for the syndicated facility.