M/I Homes Changes Credit Agreement

NEW YORK (AP) -- M/I Homes Inc., a homebuilder, said Friday it renegotiated the terms of a credit agreement with JP Morgan Chase, lowering the base amount available in return for loosening certain coverage provisions.

M/I said it can now borrow $500,000 under the credit line, down from $650,000.

In return, M/I is allowed to have a lower interest coverage ratio -- which measures the company's earnings before interest and taxes against its total interest bill in a specific period. The lower the ratio, the more difficult it is for a company to meet interest payments.

At the end of July, M/I Homes reported a second-quarter loss as delivery of new homes fell by nearly a quarter amid a slumping housing market.