Houston-based Camden obtained the secured credit facility fromRed Mortgage Capital Inc. of Columbus, OH. The facility includes a$175-million variable-rate loan funded with a Fannie Mae discountmortgage-backed security. It is priced at 4.2% per annum for a10-year term, with the interest rate resetting every 90 days afterOct. 1. Camden's capital package also includes a $205-million loan,with a 5.625% fixed-rate interest and 10-year term. There is aone-year option to extend at a variable rate.

At yesterday's annual meeting, Camden's CEO Richard Campo saysthe REIT is in good shape financially--with a zero balance on itsline of credit. "We'll use the new credit facility to pay down someof the property mortgages, which should lead to more cash on thebalance sheet by year end," he told analysts and shareholders.

Rod Petrik, managing director with Baltimore-based StifelNicolaus & Co., says the facility will do more than knock downa few mortgages. "What they're doing is creating flexibility andcapacity in this market," he explains to GlobeSt.com. "There aretwo reasons why a REIT does this: because they have to or becausethey can. Camden is doing it because they can."