DDR Announces $1.2 Billion Refinancing of Unsecured Revolving
Credit and Secured Term Loan Facilities
BEACHWOOD, Ohio, Jan. 17, 2013 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) announced today that it has closed the refinancing of
its two senior unsecured revolving credit facilities scheduled to
mature in February 2016 and its
senior secured term loan scheduled to mature in September 2014.
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The new $750 million unsecured
revolving credit facility, arranged by J.P. Morgan Securities LLC
and Wells Fargo Securities, LLC, has an initial maturity of
April 2017, a borrower option to
extend an additional year, and contains an accordion feature that
provides for $1.25 billion of
potential total capacity. DDR also refinanced its
$65 million unsecured revolving
credit facility, provided solely by PNC Bank, National Association,
to match the terms of the $750
million unsecured revolving credit facility.
Pricing on both refinanced revolving credit facilities was
reduced and is currently set at LIBOR plus 140 bp, a decrease of 25
bp from the previous rate, and is determined based upon DDR's
credit ratings from Moody's and S&P. Further, the annual
facility fee for both revolving credit facilities has been reduced
from 35 bp to 30 bp.
Simultaneously with refinancing its unsecured revolving credit
facilities, DDR refinanced its $400
million senior secured term loan scheduled to mature in
September 2014. The new secured term loan, arranged by
KeyBanc Capital Markets and RBC Capital Markets, has an initial
maturity of April 2017 with a
borrower option to extend an additional year. Pricing on the
new secured term loan is currently set at LIBOR plus 155 bp, a
decrease of 15 bp from the previous rate, and is determined based
upon DDR's credit ratings from Moody's and S&P. During
the fourth quarter of 2012, the secured term loan was reduced to
$400 million from $500 million, using proceeds from DDR's
re-opening of its 2022 Senior Unsecured Notes.
David J. Oakes, DDR's president
and chief financial officer, commented, "These refinancings are
consistent with our stated objectives to extend duration and lower
our cost of capital as we continue to reduce our corporate risk
profile."
About DDR
DDR is an owner and manager of 459
value-oriented shopping centers representing 116 million square
feet in 39 states, Puerto Rico and
Brazil. The company's assets are
concentrated in high barrier-to-entry markets with stable
populations and high growth potential and its portfolio is actively
managed to create long-term shareholder value. DDR is a
self-administered and self-managed REIT operating as a fully
integrated real estate company, and is publicly traded on the New
York Stock Exchange under the ticker symbol DDR. Additional
information about the company is available at www.ddr.com.
Safe Harbor
DDR considers portions of the information
in this press release 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 our results to differ materially from those indicated
by such forward-looking statements, including, among other factors,
local conditions such as oversupply of space or a reduction in
demand for real estate in the area; competition from other
available space; dependence on rental income from real property;
the loss of, significant downsizing of or bankruptcy of a major
tenant; constructing properties or expansions that produce a
desired yield on investment; our ability to buy or sell assets on
commercially reasonable terms; our ability to complete acquisitions
or dispositions of assets under contract; our ability to secure
equity or debt financing on commercially acceptable terms or at
all; our ability to enter into definitive agreements with regard to
our financing and joint venture arrangements or our failure to
satisfy conditions to the completion of these arrangements; and the
success of our capital recycling strategy. For additional
factors that could cause the results of the Company to differ
materially from those indicated in the forward-looking statements,
please refer to the Company's Form 10-K for the year ended
December 31, 2011, as amended.
The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
SOURCE DDR Corp.