Developers Diversified Realty Prices $300 Million of Senior Unsecured Notes

Mar 02, 2011, 15:06 ET from Developers Diversified Realty Corporation

BEACHWOOD, Ohio, March 2, 2011 /PRNewswire/ -- Developers Diversified Realty Corporation (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 4.75% notes due April 2018. The notes are being offered to investors at a price of 99.315% with a yield to maturity of 4.86%. Interest on the notes will be paid semi-annually on April 15 and October 15. The offering is expected to close on or about March 7, 2011, subject to customary closing conditions.

The net proceeds to the Company, after subtracting the underwriting discount and estimated offering expenses, are expected to be approximately $295.5 million, which the Company intends to use to repay short-term higher cost mortgage debt and to reduce balances on its revolving credit facilities and secured term loan.

Merrill Lynch, Pierce, Fenner and Smith Incorporated; J.P. Morgan Securities LLC and RBC Capital Markets, LLC are serving as joint book-running managers; PNC Capital Markets LLC; Scotia Capital (USA) Inc.; U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are serving as senior co-managers; and BNY Mellon Capital Markets, LLC; Daiwa Capital Markets America Inc.; ING Financial Markets LLC; KeyBanc Capital Markets Inc.; Morgan Keegan & Company, Inc.; RBS Securities Inc. and The Williams Capital Group, L.P. are serving as co-managers for the offering.

The offering may be made only by means of a prospectus supplement and the accompanying prospectus. A copy of the final prospectus supplement and accompanying prospectus relating to this offering may be obtained, when available, by contacting: Merrill Lynch, Pierce, Fenner & Smith Incorporated, 100 West 33rd Street, 3rd Floor, New York, New York 10001, Attention: Prospectus Department or at 1-800-294-1322; or from J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attention: High Grade Syndicate Desk, 3rd Floor, or collect at 1-212-834-4533; or from RBC Capital Markets, LLC, 200 Vesey Street, New York, New York 10281 or at 1-866-375-6829.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the notes or any other securities, nor will there be any sale of the notes or any other 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 Developers Diversified Realty

Developers Diversified owns and manages approximately 570 retail operating and development properties in 41 states, Brazil, Canada and Puerto Rico. Totaling approximately 132 million square feet, the Company'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 primarily clustered around Sao Paulo, Brazil. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company.

Developers Diversified -- Financial

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