Killam Properties Inc. announces renewed and amended credit facility

    HALIFAX, June 2 /CNW/ - Killam Properties Inc. (TSX:KMP/KMP:DB) today
announced that it has renewed and restated its revolving credit facility. The
amount available under the updated facility varies with the value of pledged
assets, to a maximum not to exceed $15 million, and replaces the previous
facility with a maximum limit of $40 million. The amended facility includes
the option for a commitment increase, allowing Killam a one-time opportunity
to increase the credit limit to $40 million.
    The facility bears interest at prime plus 300 basis points, or at
Killam's option, the bankers' acceptance rate plus 400 basis points. The
facility matures on May 26, 2010 and includes an opportunity to extend the
maturity date by an additional year.
    "We are pleased to announce the renewed facility", noted Philip Fraser,
Killam's President and Chief Executive Officer. "The credit limit of $15
million more closely reflects our current maximum expected requirement from
the line, given the maximum usage on the previous $40 million facility was
only $10.6 million. The new facility provides ample room, and the accordion
option, allowing a one-time increase to $40 million, provides additional
flexibility without an increased standby charge on a limit we don't expect to

    Corporate Profile

    Killam Properties Inc, based in Halifax, Nova Scotia, is one of Canada's
largest residential landlords, owning and operating multi-family apartments
and manufactured home communities.

    Note: The Toronto Stock Exchange has neither approved nor disapproved of
the information contained herein. Certain statements in this report may
constitute forward-looking statements relating to our operations and the
environment in which we operate, which are based on our expectations,
estimates, forecast and projections, which we believe are reasonable as of the
current date. Such forward-looking statements involve risks, uncertainties and
other factors which may cause actual results, performance or achievements of
Killam to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. For more
exhaustive information on these risks and uncertainties, you should refer to
our most recently filed annual information form which is available at Readers, therefore, should not place undue reliance on any such
forward-looking statements. Further, a forward-looking statement speaks only
as of the date on which such statement is made and should not be relied upon
as of any other date. Other than as required by law, Killam does not undertake
to update any of such forward-looking statements.

For further information:

For further information: Dale Noseworthy, CA, CFA, Director, Investor
and External Relations, Killam Properties Inc., (902) 442-0388,

Organization Profile

Killam Properties Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890