BEACHWOOD, Ohio, April 23, 2015 /PRNewswire/ -- DDR Corp. (NYSE: DDR) announced today that it has closed the refinancing of its two unsecured revolving credit facilities scheduled to mature in April 2018 and closed on a new $400 million unsecured term loan.
The amended $750 million unsecured revolving credit facility, arranged by J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, has an initial maturity of June 2019 with two borrower options to extend for two additional six-month periods, and contains an accordion feature that provides for $1.25 billion of potential total capacity. DDR refinanced its unsecured revolving credit facility provided solely by PNC Bank, National Association, in the amount of $50 million, matching 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 100 bp, a decrease of 15 bp from the previous rate, and is determined based upon DDR's credit ratings.
Simultaneously with refinancing its unsecured revolving credit facilities, DDR entered into a new $400 million unsecured term loan arranged by Wells Fargo Securities, LLC and PNC Capital Markets, LLC. The unsecured term loan has an initial maturity of April 2017 with a borrower option to extend for three additional one-year periods. Pricing on the unsecured term loan is currently set at LIBOR plus 110 basis points and is determined based upon DDR's credit ratings.
At close, the unsecured term loan is undrawn, but it can be drawn at any time over the next twelve months. Proceeds from the unsecured term loan are expected to be used to retire the upcoming maturity of unsecured notes and secured mortgages. The four Prime assets currently encumbered by $255 million in mortgage debt will be added to the unencumbered pool once the secured debt is retired.
"We are pleased to announce these financings, which are consistent with our stated objectives to extend duration and lower our cost of capital as we continue to focus on operating with an appropriate risk profile. Our new $400 million unsecured term loan addresses almost half of our 2015 debt maturities, and, at the same time, enables us to continue to grow our unencumbered pool while enhancing its quality with the expected addition of four franchise assets," commented Luke J. Petherbridge, chief financial officer of DDR. "We very much appreciate the support of our lender group in closing these significant transactions and allowing us to access the favorable pricing available."
About DDR Corp.
DDR is an owner and manager of 407 value-oriented shopping centers representing 117 million square feet in 41 states and Puerto Rico. 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 Corp. 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 supply 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, 2014, 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.