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.
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."
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.
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.
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