United Dominion Realty Trust, Inc. (NYSE: UDR) announced today that it has amended its $500 million unsecured revolving credit facility and extended the term an additional two years. The credit facility matures on May 31, 2008, and, at the Company's option, can be extended for an additional year. The credit facility was arranged by Wachovia Capital Markets, LLC and J.P. Morgan Securities, Inc. and was syndicated to 15 banks.
The Company has the right to increase the credit facility to $750 million. Based on the Company's current credit ratings, the credit facility carries an interest rate equal to LIBOR plus a spread of 57.5 basis points, which represents a 12.5 basis point reduction to the previous unsecured revolver, and the facility fee was reduced from 20 basis points to 15 basis points. Under a competitive bid feature and for so long as the Company maintains an Investment Grade Rating, the Company has the right to bid out 100% of the commitment amount. Recent competitive bid pricing has been LIBOR plus 16 to 19 basis points.
"The work we have done over the last four years to improve our fixed charge coverage, reduce secured debt, and grow our unencumbered asset pool enabled the Company to extend and improve our credit facility," stated Rod Neuheardt, Senior Vice President and Treasurer. "We believe that this amendment gives the Company the most competitive covenant and pricing package in the REIT apartment market today and provides an important resource to enable our continued success in executing our business strategy."
About United Dominion Realty Trust, Inc.
United Dominion is the fourth-largest apartment REIT, owning and operating apartment communities nationwide. The Company has raised the dividend each of the last 29 years. United Dominion is included in the S&P MidCap 400 Index. At March 31, 2005, the Company owned 77,704 apartment homes and had 807 homes under development. Additional information about United Dominion may be found on its Web site at www.udrt.com.
Statements contained in this press release, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the Company's use of words such as, "expects," "plans," "estimates," "is considering," "projects," "intends," "believes," and similar expressions that do not relate to historical matters. Such forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated. All forward-looking statements in this press release are made as of today, based upon information known to management as of the date hereof. The Company assumes no obligation to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.
CONTACT: United Dominion Realty Trust, Inc.
Larry Thede, 720-283-2450
SOURCE: United Dominion Realty Trust, Inc.