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.
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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 a borrower option to
extend an additional year, 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.
Safe Harbor
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.
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SOURCE DDR Corp.