BEACHWOOD, Ohio, Oct. 20 /PRNewswire-FirstCall/ -- Developers
Diversified Realty Corporation (NYSE: DDR) ("DDR") announced today
that it has closed on the refinancing of its two senior unsecured
revolving credit facilities. A new $950
million unsecured facility, arranged by J.P. Morgan
Securities LLC and Wells Fargo Securities, LLC replaces DDR's
$1.25 billion facility maturing in
June 2011. The new facility has an
uncommitted accordion feature for a total facility of up to
$1.2 billion and a 40-month term that
expires February 28, 2014. DDR also
closed on a new $65 million unsecured
revolving credit facility provided solely by PNC Bank, National
Association, which replaces DDR's $75
million facility maturing in June
2011. This $65 million
unsecured facility also has a 40-month term that expires
February 28, 2014.
Daniel Hurwitz, DDR's President
and Chief Executive Officer, stated, "As I mentioned in our 2009
Annual Report, refinancing our line of credit was a top priority
for this year, and I am very pleased that we have closed this
transaction almost nine months before maturity, as another
important step in lowering our risk profile."
Pricing on both new revolving credit facilities is currently set
at LIBOR plus 275 basis points and is determined based upon DDR's
current corporate credit ratings from Moody's and S&P. There
are no LIBOR floors. The covenants on the new facilities include an
unencumbered net operating income yield test and several minor
modifications to the previous facilities' covenants. DDR believes
that the new covenants continue to provide adequate cushion for
DDR's business needs and are consistent with DDR's business plan of
lowering leverage.
In conjunction with the closing of the new unsecured facilities,
DDR modified its secured term loan, agented by KeyBank National
Association, to conform to the amended covenants in the new
unsecured revolving credit agreements. In addition, DDR made a
voluntary prepayment of $200 million
on the term loan leaving an outstanding balance of $600 million. The pricing on the term loan
remains unchanged as of the closing of the amendment at LIBOR plus
120 basis points and the final maturity remains February 20, 2012.
David Oakes, DDR's Chief
Financial Officer, stated, "We are pleased to complete this major
refinancing, which is consistent with our commitment to extending
duration while also lowering our reliance on short term bank debt.
We are appreciative of the support shown by our strong bank
relationships which allowed us to complete these transactions and
do so at terms better than our expectations earlier in the
year."
About Developers Diversified
Developers Diversified owns and manages approximately 590 retail
operating and development properties in 42 states, Brazil, Canada and Puerto
Rico. Totaling more than 134 million square feet, Developers
Diversified's shopping center portfolio features open-air,
value-oriented neighborhood and community centers, mixed-use
centers and lifestyle centers located in prime markets with stable
populations and high-growth potential. Developers Diversified is
the largest landlord in Puerto
Rico and owns a premier portfolio of regional malls in and
around Sao Paulo, Brazil.
Developers Diversified is a self-administered and self-managed REIT
operating as a fully integrated real estate company. Additional
information about the Company is available at www.ddr.com.
SOURCE Developers Diversified Realty Corporation
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