SOURCE: Developers Diversified Realty

July 06, 2006 16:15 ET

Developers Diversified Amends Its Unsecured Credit Facilities and Secured Term Loan

CLEVELAND, OH -- (MARKET WIRE) -- July 6, 2006 -- Developers Diversified (NYSE: DDR) announced it has amended its two unsecured credit facilities and its secured $400 million term loan.

--  Developers Diversified expanded its senior unsecured credit facility
    from $1.0 billion to $1.2 billion and added an accordion feature to
    increase the facility, at the Company's option, up to $1.4 billion.  The
    Company reduced interest rate pricing to LIBOR plus 60 basis points, based
    on the Company's current corporate credit ratings (Baa2 stable from Moody's
    and BBB stable from Standard and Poors), and extended the maturity to June
    2010.
    
--  Developers Diversified amended its $60 million unsecured credit
    facility with National City Bank to reflect consistent terms, pricing and
    maturity as in the $1.2 billion credit facility.
    
--  Developers Diversified amended its $400 million secured term loan.
    The Company added an accordion feature to increase the loan, at the
    Company's option, up to $500 million.
    
Scott A. Wolstein, Chairman and Chief Executive Officer of Developers Diversified, commented, "We're delighted to announce these improvements to these key corporate finance vehicles. Coming on the heels of our recent credit rating upgrade from Moody's, we're gratified that the capital markets recognize the strength of our financial profile through expanded capacity, improved pricing and extended maturity."

"We also eliminated and modified several of the existing covenants," Mr. Wolstein continued, "which will have a meaningful impact on our financial flexibility. Moreover, we now have conforming language, covenants, pricing and term, which are critical to increasing efficiency."

JPMorgan Securities, Inc. and Banc of America Securities LLC are Joint Lead Arrangers and Joint Bookrunners on Developers Diversified's $1.2 billion senior unsecured credit facility. JPMorgan Chase Bank, N.A. is Administrative Agent. Bank of America, N.A. is Syndication Agent. Eurohypo AG, New York Branch, Wachovia Bank, N.A. and Wells Fargo Bank, N.A. are Documentation Agents.

Keybanc Capital Markets and Banc of America Securities LLC are Joint Lead Arrangers on Developers Diversified's $400 million secured term loan. Keybanc 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 PNC Bank, National Association are Documentation Agents.

Developers Diversified owns or manages approximately 500 operating and development retail properties in 44 states, plus Puerto Rico, comprising approximately 114 million square feet. Developers Diversified is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which develops, leases and manages shopping centers. You can learn more about Developers Diversified on the Internet at www.ddr.com.

Contact Information

  • Contact:
    Michelle M. Dawson
    Vice President of Investor Relations
    Developers Diversified Realty
    Main: (216) 755-5500
    Fax: (216) 755-1455
    E-mail: Email Contact