M.D.C. Holdings has increased a $600 million Bank One-led revolver to $700 million as part of its projected 15% per-year growth strategy. "MDC is a growing company and along the way there may be opportunities to grow, even to make acquisitions, and we want to have the available capital," Gary Reece, cfo of MDC, explained. MDC also extended the maturity to April 2009.
The homebuilder's credit facility originated back in 1996. "Our facility has evolved since 1996 and from then it has been modified to the structure we have today," said John Heaney, MDC's senior v.p. and treasurer. Since the origination of the facility, Bank One has been MDC's ongoing administrative agent. "We have a very longstanding relationship with Bank One. Throughout the years it has been supportive of MDC Holdings and the leader of our bank group," Heaney added.
Reece does not expect any negative impact on MDC's relationship with Bank One after the merger with J.P. Morgan is completed. "As part of a larger institution we expect the impact of the merger to be positive," Reece noted. "The expectation is that the group that we are working with will continue to handle these type of accounts," he added.
Wachovia Securities, BNP Paribas, Guaranty Bank, Key Bank, SunTrust Bank, U.S. Bank, Washington Mutual Bank, California Bank & Trust, Comerica Bank and AmSouth Bank are participating in the upsized revolver. Two newcomers, Bank of America and The Royal Bank of Scotland, are participating as well.