SOURCE: Developers Diversified

March 30, 2005 08:30 ET

Developers Diversified Realty Amends Senior Unsecured Credit Facility and Extends Term to May 2008

CLEVELAND, OH -- (MARKET WIRE) -- March 30, 2005 -- Developers Diversified Realty (NYSE: DDR) announced it has amended its senior unsecured credit facility and extended the term of the facility by two years from May 30, 2006 to May 30, 2008. The amended facility provides for an accordion feature to expand the size of the facility, at the Company's option, from the current level of $1.0 billion to $1.25 billion. The facility also includes a reduction in the interest rate from LIBOR plus 80 basis points to LIBOR plus 67.5 basis points, based on the Company's current corporate credit ratings (Moody's rating is Baa3 stable and Standard & Poor's is BBB stable).

Scott A. Wolstein, Chairman and CEO of Developers Diversified, commented, "We are gratified by the capital market's confidence in our corporate credit and financial performance and are pleased to announce these improvements to our senior unsecured credit facility. These changes provide the Company with additional financial strength through improved pricing, greater operating flexibility, an extended maturity and additional banking relationships."

JP Morgan Securities, Inc. and Banc of America Securities LLC are Joint Lead Arrangers and Joint Bookrunners and JP Morgan Chase Bank, N.A. is Administrative Agent. Bank of America, N.A. is Syndication Agent; Wells Fargo Bank, NA, Commerzbank AG and Wachovia Bank, National Association are Documentation Agents.

Developers Diversified owns or manages approximately 470 operating and development retail properties in 44 states, plus Puerto Rico, comprising approximately 108 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.

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E 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. The acquisition is subject to standard closing conditions. In addition, there are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply 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 or the loss of a major tenant. For more details on the risk factors, please refer to the Company's Form on 10-K as of December 31, 2004.

Contact Information

  • Michelle A. Mahue
    Vice President of Investor Relations
    Developers Diversified Realty
    Main: (216) 755-5500
    Fax: (216) 755-1455
    E-mail: mmahue@ddr.com