SOURCE: Developers Diversified Realty

April 26, 2005 10:10 ET

Developers Diversified Realty Announces Sale of $400 Million of Senior Notes

CLEVELAND, OH -- (MARKET WIRE) -- April 26, 2005 -- Developers Diversified Realty (NYSE: DDR) announced that it has priced $400 million of senior unsecured notes, $200 million of five-year notes and $200 million of ten-year notes. The five-year notes have an interest rate of 5.0%, are due on May 3, 2010 and were offered at 99.806% of par. The ten-year notes have an interest rate of 5.5%, are due on May 1, 2015 and were offered at 99.642% of par. The effective interest rate, after taking into account the treasury rate locks that were previously entered into by the Company will adjust the five-year rate to approximately 4.95% and ten-year rate to approximately 5.37%. Proceeds from the offering will be primarily used to repay indebtedness of our subsidiary, DDR PR Ventures LLC, S.E. ("DDR PR"), under our primary revolving credit facility. Deutsche Bank, JP Morgan, and Morgan Stanley acted as book running managers. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer.

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:
    William H. Schafer
    Senior Vice President and Chief Financial Officer
    Developers Diversified Realty
    216.755.5775