SOURCE: Developers Diversified Realty

October 04, 2005 19:30 ET

Developers Diversified Realty Announces Sale of $350 Million of Senior Notes

CLEVELAND, OH -- (MARKET WIRE) -- October 4, 2005 -- Developers Diversified Realty Corporation (NYSE: DDR) announced that it has priced $350 million of seven-year senior unsecured notes. The 5.375% notes are due on October 15, 2012 and will be offered to the public at 99.52% of par. The notes are redeemable prior to maturity at par value plus a make-whole premium. If the notes are redeemed within 90 days of the maturity date, no make-whole premium will be paid. The effective interest rate, after taking into account the treasury rate locks that were previously entered into by the Company will adjust the seven-year rate to 5.1%. Proceeds from the offering will be used for general corporate purposes, including repayment of floating rate debt on the Company's corporate revolving credit facilities.

Banc of America Securities LLC, Deutsche Bank Securities, and JPMorgan acted as book-running managers. A copy of the final prospectus may be obtained from the book-running managers. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security.

Developers Diversified currently owns or manages over 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 acquires, develops and manages shopping centers. Additional information about Developers Diversified is available on the Internet at http://www.ddr.com.

Developers Diversified 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, constructing properties or expansions that produce a desired yield on investment 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 M. Dawson
    Vice President - Investor Relations
    Developers Diversified
    216.755.5455