Deals | Mon Jul 21, 2008 3:45pm BST

Meritage shares rise after revised credit accord

BOSTON (Reuters) - Shares of home builder Meritage Homes Corp (MTH.N) rose 9 percent on Monday after the company said it had reached an agreement to revise the terms of a credit line.

Guaranty Bank has agreed to reduce the borrowing capacity on its credit line to $500 million from $800 million and increased its interest rate by 1 percentage point, Meritage said in a filing with the U.S. Securities and Exchange Commission dated July 18.

Meritage shares were up $1.42 at $17.43 on the New York Stock Exchange. Earlier, they had been as high as $18.60, the highest since early June.

(Reporting by Scott Malone, editing by Maureen Bavdek)