PPS Signs New Credit Facility - Analyst Blog
20 Gennaio 2012 - 5:27PM
Zacks
Post Apartment Homes, L.P., the operating arm of Post
Properties, Inc. (PPS) recently announced that it has
obtained a new $300 million unsecured bank term loan facility and a
$30 million unsecured cash management line of credit facility.
The new credit facility has a time period of four years and is
scheduled to mature in January 2016. The new credit facility
replaces the company’s existing $300 million unsecured revolving
credit facility and the new credit agreement amends the operating
partnership’s existing $30 million unsecured revolving cash
management line.
The $100 million borrowed under the new term loan facility will
be used by the company to pay down a portion of the outstanding
balance under the revolving credit facility and to pay related fees
and expenses. The remaining $200 million will be used for general
business purposes, including the repayment of approximately $95.7
million of 5.45% senior unsecured notes and approximately $53.7
million of 5.50% secured mortgage notes.
The strategic move is aimed at attaining financial flexibility
and strengthening its balance sheet. At the end of third quarter;
the company had cash and cash equivalents of $73.3 million.
Post Properties reported FFO (fund from operations) of $26.7
million or 52 cents per share in the third quarter of 2011 compared
with $40.3 million or 82 cents per share in the year-earlier
quarter. Fund from operations, a widely used metric to gauge the
performance of REITs, is obtained after adding depreciation and
amortization and other non-cash expenses to net income.
Post Properties together with its subsidiaries, engages in the
development, ownership, and management of multifamily apartment
communities in the United States.
Post Properties currently retains a Zacks #1 Rank, which
translates into a short-term Strong Buy rating. We are also
maintaining our long-term Outperform recommendation on the stock.
One of its competitors, Equity Residential (EQR)
has a Zacks #3 Rank, implying a short-term Hold rating.
EQUITY RESIDENT (EQR): Free Stock Analysis Report
POST PPTYS INC (PPS): Free Stock Analysis Report
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