Developers Diversified Realty Taps $300 Million in Additional Borrowing Capacity Through Expansion of Secured Term Loan and Seni
December 13 2007 - 9:00AM
Marketwired
CLEVELAND, OH , the nation's leading owner, developer and
manager of market-dominant shopping centers, today announced it has
exercised the accordion feature of its secured term loan,
increasing total capacity from $550 million to $800 million. Loan
pricing remained constant at LIBOR plus 70 basis points. The loan
matures in 2011 and has a one-year extension option.
In addition, Developers Diversified announced it has amended its
existing $1.2 billion senior unsecured credit facility. Changes
include an increase of the global, multi-currency tranche to $300
million and expansion to include the Canadian dollar and other
covenant adjustments to better reflect the Company's evolving
business. Developers Diversified has also received a commitment to
increase the size of the senior unsecured credit facility by $50
million to $1.25 billion, pursuant to the terms of the accordion
feature in its revolving credit facility.
Scott A. Wolstein, Chairman and Chief Executive Officer of
Developers Diversified, commented, "We are delighted to announce
the expanded capacity and competitive pricing of our term loan,
which reflect the strength of our corporate credit, as well as our
ability to cultivate strong banking relationships and maintain
broad access to numerous capital sources."
William H. Schafer, Executive Vice President and Chief Financial
Officer of Developers Diversified, commented, "We are pleased by
the commitments we have received from our banks in the current
market environment. This increased capacity on the term loan, which
incorporated assets acquired from IRRETI, combined with an
additional $50 million commitment on our senior unsecured credit
facility and other covenant modifications to our line, further
enhances our liquidity and financial flexibility."
KeyBanc Capital Markets and Banc of America Securities are Joint
Lead Arrangers on Developers Diversified's $800 million secured
term loan. KeyBank National Association is Book Manager and
Administrative Agent. Bank of America, N.A. is Syndication Agent.
Eurohypo AG, New York Branch, ING Real Estate Finance (USA) LLC and
Scotiabanc Inc. are Documentation Agents.
JPMorgan Securities and Banc of America Securities are joint
lead arrangers on Developers Diversified's senior unsecured credit
facility.
Developers Diversified Realty owns and manages approximately 740
retail operating and development properties in 45 states, plus
Puerto Rico, Brazil, Russia, and Canada, totaling over 160 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 Realty
is available on the Internet at http://www.ddr.com.
Contact: Michelle M. Dawson Vice President of Investor Relations
Developers Diversified Realty Email: Email Contact Main: (216)
755-5500
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