SOURCE: Developers Diversified Realty

December 13, 2007 09:00 ET

Developers Diversified Realty Taps $300 Million in Additional Borrowing Capacity Through Expansion of Secured Term Loan and Senior Unsecured Credit Facility

CLEVELAND, OH--(Marketwire - December 13, 2007) - Developers Diversified Realty (NYSE: DDR), the nation's leading owner, developer and manager of market-dominant shopping centers, today announced it has exercised the accordion feature of its secured term loan, increasing total capacity from $550 million to $800 million. Loan pricing remained constant at LIBOR plus 70 basis points. The loan matures in 2011 and has a one-year extension option.

In addition, Developers Diversified announced it has amended its existing $1.2 billion senior unsecured credit facility. Changes include an increase of the global, multi-currency tranche to $300 million and expansion to include the Canadian dollar and other covenant adjustments to better reflect the Company's evolving business. Developers Diversified has also received a commitment to increase the size of the senior unsecured credit facility by $50 million to $1.25 billion, pursuant to the terms of the accordion feature in its revolving credit facility.

Scott A. Wolstein, Chairman and Chief Executive Officer of Developers Diversified, commented, "We are delighted to announce the expanded capacity and competitive pricing of our term loan, which reflect the strength of our corporate credit, as well as our ability to cultivate strong banking relationships and maintain broad access to numerous capital sources."

William H. Schafer, Executive Vice President and Chief Financial Officer of Developers Diversified, commented, "We are pleased by the commitments we have received from our banks in the current market environment. This increased capacity on the term loan, which incorporated assets acquired from IRRETI, combined with an additional $50 million commitment on our senior unsecured credit facility and other covenant modifications to our line, further enhances our liquidity and financial flexibility."

KeyBanc Capital Markets and Banc of America Securities are Joint Lead Arrangers on Developers Diversified's $800 million secured term loan. KeyBank National Association is Book Manager and Administrative Agent. Bank of America, N.A. is Syndication Agent. Eurohypo AG, New York Branch, ING Real Estate Finance (USA) LLC and Scotiabanc Inc. are Documentation Agents.

JPMorgan Securities and Banc of America Securities are joint lead arrangers on Developers Diversified's senior unsecured credit facility.

Developers Diversified Realty owns and manages approximately 740 retail operating and development properties in 45 states, plus Puerto Rico, Brazil, Russia, and Canada, totaling over 160 million square feet. The Company is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops and leases shopping centers. Additional information about Developers Diversified Realty is available on the Internet at

Contact Information

  • Contact:
    Michelle M. Dawson
    Vice President of Investor Relations
    Developers Diversified Realty
    Email: Email Contact
    Main: (216) 755-5500