DDR Prices $300 Million Offering of Senior Unsecured Notes

May 16, 2013, 16:15 ET from DDR Corp.

BEACHWOOD, Ohio, May 16, 2013 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced the pricing of $300 million of senior unsecured notes in an underwritten public offering.  The offering consists of $300 million of 3.375% notes due 2023.  The notes are being offered to investors at a price of 99.397% with a yield to maturity of 3.447%.  Interest on the notes will be paid semi-annually on May 15 and November 15.  The offering is expected to close on or about May 23, 2013, subject to customary closing conditions.

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UBS Securities LLC, Jefferies LLC, RBS Securities Inc., U.S. Bancorp Investments, Inc. and Scotia Capital (USA) Inc. are serving as joint book-running managers for the offering. BNY Mellon Capital Markets, LLC and Regions Securities LLC are serving as senior co-managers, and The Huntington Investment Company, Evercore Group L.L.C. and The Williams Capital Group, L.P. are serving as co-managers, for the offering. 

DDR expects to use a substantial portion of the net proceeds it receives from the offering of the notes to fund part of the cash costs in connection with the acquisition described below.  DDR expects to use the remainder of the net proceeds for general corporate purposes, including the repayment of debt.

On May 15, 2013, DDR and certain of its affiliates entered into a purchase agreement with certain affiliates of The Blackstone Group L.P. pursuant to which DDR has agreed to acquire sole ownership of a portfolio of 30 open-air, value-oriented power centers that are currently owned by a joint venture between affiliates of Blackstone and DDR.

A copy of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, from: UBS Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York, NY 10171, telephone: 877-827-6444, ext. 5613884; Jefferies LLC, Attention: Debt Syndicate Prospectus Department, 520 Madison Avenue, 12th floor, New York, NY 10022, telephone: 877-547-6340 or email: Prospectus_Department@Jefferies.com; RBS Securities Inc., Attn: Debt Capital Markets Syndicate, 600 Washington Boulevard, Stamford, CT 06901, telephone: 866-884-2071; U.S. Bancorp Investments, Inc., 214 N. Tryon St., Charlotte, North Carolina 28202, telephone: 877-558-2607; and Scotia Capital (USA) Inc., Attn: Fixed Income Syndicate, 165 Broadway, 25th Floor, New York, NY 10006, telephone: 800-372-3930.

This release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted.  A registration statement relating to these securities has been filed with the Securities and Exchange Commission and is effective.

About DDR Corp.

DDR is an owner and manager of 445 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.

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, our ability to successfully complete our planned acquisition of sole ownership of a portfolio of 30 shopping centers from our joint venture with an affiliate of The Blackstone Group, L.P.; 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, 2012, 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.