DDR Corp.'s (DDR) offering of 16.5 million shares was priced at
a 0.9% discount from Wednesday's closing price.
Shares were up 1.8% at 13.30 in the premarket, above the offer
price of $12.95. The stock closed Wednesday at $13.07 and was up
17% over the past three months.
The real-estate investment trust's shares are being offered in
connection with a forward sale agreement with Goldman Sachs Group
Inc. (GS) and Citigroup Inc. (C), which are each expected to borrow
and sell half the shares offered. DDR said it won't receive any
proceeds from the sale until settlement of the forward sale
agreements, which are expected to close on or about June 29.
DDR plans to use the proceeds from the sale to fund a newly
created joint venture with Blackstone Group L.P. (BX). The
companies said earlier this week that they agreed to acquire a
portfolio of 46 shopping centers from real-estate firm EPN Group in
a transaction valued at $1.43 billion.
Blackstone Real Estate Partners VII, a real estate fund managed
by Blackstone, will own 95% of the joint venture's common equity,
while a DDR affiliate will own 5%. DDR will also invest $150
million in preferred equity in the venture and will continue to
provide leasing and management services.
In October, DDR said its third-quarter loss widened on an
impairment charge, though the trust posted solid leasing activity
throughout its portfolio.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108; ben.rubin@dowjones.com;