Developers Diversified Realty Announces Refinancing of Unsecured Revolving Credit Facilities and Paydown of Secured Term Loan

Oct 20, 2010, 16:01 ET from Developers Diversified Realty Corporation

BEACHWOOD, Ohio, Oct. 20 /PRNewswire-FirstCall/ -- Developers Diversified Realty Corporation (NYSE: DDR) ("DDR") announced today that it has closed on the refinancing of its two senior unsecured revolving credit facilities. A new $950 million unsecured facility, arranged by J.P. Morgan Securities LLC and Wells Fargo Securities, LLC replaces DDR's $1.25 billion facility maturing in June 2011. The new facility has an uncommitted accordion feature for a total facility of up to $1.2 billion and a 40-month term that expires February 28, 2014. DDR also closed on a new $65 million unsecured revolving credit facility provided solely by PNC Bank, National Association, which replaces DDR's $75 million facility maturing in June 2011. This $65 million unsecured facility also has a 40-month term that expires February 28, 2014.

Daniel Hurwitz, DDR's President and Chief Executive Officer, stated, "As I mentioned in our 2009 Annual Report, refinancing our line of credit was a top priority for this year, and I am very pleased that we have closed this transaction almost nine months before maturity, as another important step in lowering our risk profile."

Pricing on both new revolving credit facilities is currently set at LIBOR plus 275 basis points and is determined based upon DDR's current corporate credit ratings from Moody's and S&P. There are no LIBOR floors. The covenants on the new facilities include an unencumbered net operating income yield test and several minor modifications to the previous facilities' covenants. DDR believes that the new covenants continue to provide adequate cushion for DDR's business needs and are consistent with DDR's business plan of lowering leverage.

In conjunction with the closing of the new unsecured facilities, DDR modified its secured term loan, agented by KeyBank National Association, to conform to the amended covenants in the new unsecured revolving credit agreements. In addition, DDR made a voluntary prepayment of $200 million on the term loan leaving an outstanding balance of $600 million. The pricing on the term loan remains unchanged as of the closing of the amendment at LIBOR plus 120 basis points and the final maturity remains February 20, 2012.

David Oakes, DDR's Chief Financial Officer, stated, "We are pleased to complete this major refinancing, which is consistent with our commitment to extending duration while also lowering our reliance on short term bank debt. We are appreciative of the support shown by our strong bank relationships which allowed us to complete these transactions and do so at terms better than our expectations earlier in the year."

About Developers Diversified

Developers Diversified owns and manages approximately 590 retail operating and development properties in 42 states, Brazil, Canada and Puerto Rico. Totaling more than 134 million square feet, Developers Diversified's shopping center portfolio features open-air, value-oriented neighborhood and community centers, mixed-use centers and lifestyle centers located in prime markets with stable populations and high-growth potential. Developers Diversified is the largest landlord in Puerto Rico and owns a premier portfolio of regional malls in and around Sao Paulo, Brazil. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company. Additional information about the Company is available at www.ddr.com.

SOURCE Developers Diversified Realty Corporation



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