SOURCE: Developers Diversified

July 05, 2005 10:51 ET

Developers Diversified Realty Announces $220 Million Term Loan

CLEVELAND, OH -- (MARKET WIRE) -- July 5, 2005 -- Developers Diversified Realty (NYSE: DDR) entered into a $220 million secured loan agreement with KeyBank National Association as Administrative Agent and Bank of America, N.A. as Syndication Agent. KeyBank Capital Markets and Banc of America Securities LLC acted as joint lead arrangers for the facility. The secured term loan matures in June 2008 with two one-year extensions. The interest rate, which is currently 0.85% over LIBOR, is based on grid pricing determined by the Company's corporate credit ratings from S&P and Moody's. The term loan is secured by the equity in certain assets that are already encumbered by first mortgages. The initial amount of the term loan is $220 million, with an accordion feature that allows for a future increase to $400 million.

Proceeds from the term loan were used to repay amounts outstanding on Developers Diversified's revolving credit facilities.

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. 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, the loss of a major tenant or inability to enter into definitive agreements with regard to our financing arrangements or our failure to satisfy conditions to the completion of these arrangements. For more details on the risk factors, please refer to the Company's Form on 10-K as of December 31, 2004.

Contact Information

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