Developers Diversified Announces New Secured Debt Financings for $125 Million, Otto Transaction Scheduled to Close May 11
May 06 2009 - 3:06PM
Marketwired
Developers Diversified Realty (NYSE: DDR), the leading owner,
manager and developer of market-dominant shopping centers in the
United States, announced that it has secured new debt financings
for an aggregate of $125 million. The $125 million of new financing
is comprised of two loans. The first is a $40 million, two-year
loan with a one-year extension option secured by a shopping center
in New Jersey. The second financing is an $85 million, 10-year loan
secured by four assets in Puerto Rico.
The successful completion of this new debt financing was a key
closing condition that the Company was required to satisfy prior to
the closing of the sale of the first tranche of 15 million common
shares to Mr. Alexander Otto and certain members of his family.
Closing of the first tranche is scheduled to occur on May 11,
2009.
Gross proceeds from the above transactions of roughly $177
million will be used to repay debt and for general corporate
purposes.
Scott Wolstein, Developers Diversified's Chairman and Chief
Executive Officer, stated, "We are pleased with the new equity and
debt proceeds that we have raised thus far as we execute upon our
goals of enhancing liquidity and lowering leverage. We look forward
to announcing additional progress in the coming months."
Developers Diversified owns and manages over 700 retail
operating and development properties in 45 states, plus Puerto
Rico, Brazil and Canada totaling approximately 153 million square
feet. The Company is a self-administered and self-managed real
estate investment trust (REIT) operating as a fully integrated real
estate company which acquires, develops and leases shopping
centers. Additional information about Developers Diversified is
available on the Internet at http://www.ddr.com.
Forward-looking Statements
Developers Diversified Realty Corporation considers portions of
this information to be forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, both as amended, with
respect to the Company's expectation for future periods. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that its expectations will be achieved.
For this purpose, any statements contained herein that are not
historical fact may be deemed to be forward-looking statements.
There are a number of important factors that could cause the
results of the Company to differ materially from those indicated by
such forward-looking statements, including, among other factors,
our ability to continue to satisfy the conditions to the closings
of the sale of common shares contemplated by the share purchase
agreement. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect events or circumstances
that arise after the date hereof.
Contact: Tom Morabito Senior Director of Investor Relations
Developers Diversified Realty Main: (216) 755-5500 E-mail: Email
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