BEACHWOOD, Ohio, Sept. 13, 2017 /PRNewswire/ -- DDR Corp. (NYSE:
DDR) announced today that it has refinanced its two revolving
credit facilities, increasing borrowing capacity to $1.0 billion and extending their maturities. The
company also extended the maturity on $200
million of its $400 million
unsecured term loan.
"The refinancing of our lines of credit and term loan mark the
successful completion of the maturity extension and liquidity
improvement portion of our balance sheet restructuring. As a result
of this transaction and $975 million
of recent unsecured debt and perpetual preferred transactions,
DDR's weighted average debt maturity is now among the longest in
the shopping center REIT sector, and our upsized credit facility
can absorb approximately four years of existing debt
maturities. Our focus is now on completion of the
deleveraging process, which we expect to conclude by mid-2018,"
commented David Lukes, Chief
Executive Officer. "We very much appreciate the support of
our lender group during this balance sheet restructuring
process."
The amended $950 million unsecured
revolving credit facility, up from $750
million, has an initial maturity of September 1, 2021 with two six-month extension
options, and contains an accordion feature that provides for up to
$1.45 billion of potential total
capacity. DDR also refinanced its $50
million unsecured revolving credit facility provided solely
by PNC Bank, National Association, matching the borrower financial
covenants of the $950 million
unsecured revolving credit facility. Based on DDR's current
credit rating, pricing on the refinanced revolving credit
facilities remains the same as the prior facilities.
DDR also recast $200 million of
its existing $400 million unsecured
term loan. The new recast portion of the unsecured term loan has a
maturity of January 31, 2023 and the
remaining portion of the unsecured term loan has a maturity date of
January 20, 2018 with two one-year
extension options. The company anticipates repaying the earlier
maturing portion of the term loan as part of its previously
announced deleveraging plan. Pricing of the unsecured term loan
remains unchanged at LIBOR plus 110 basis points, based on DDR's
current credit rating.
JPMorgan Chase Bank, N.A. and Wells Fargo Securities, LLC served
as Joint Bookrunners, JPMorgan Chase Bank, N.A. served as
Administrative Agent, and JPMorgan Chase Bank, N.A., Wells Fargo
Securities, LLC, Citizens Bank, N.A., RBC Capital Markets and U.S.
Bank National Association served as Joint Lead Arrangers on the
amended $950 million revolving credit
facility.
Wells Fargo Securities, LLC and PNC Capital Markets LLC served
as Joint Bookrunners, Wells Fargo Bank, N.A. served as
Administrative Agent, and Wells Fargo Securities, LLC, PNC Capital
Markets LLC, and KeyBanc Capital Markets Inc. served as Joint Lead
Arrangers on the amended $400 million
unsecured term loan.
ABOUT DDR
DDR is an owner and manager of 298
value-oriented shopping centers representing 100 million square
feet in 34 states and Puerto Rico.
The Company owns a high-quality portfolio of open-air shopping
centers in major metropolitan areas that provide a
highly-compelling shopping experience and merchandise mix for
retail partners and consumers. The Company actively manages its
assets with a focus on creating long-term shareholder value. DDR is
a self-administered and self-managed REIT operating as a fully
integrated real estate company, and is publicly traded on the New
York Stock Exchange under the ticker symbol DDR.
SAFE HARBOR
DDR Corp. considers portions of the
information in this press release to be forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E 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 our results to differ materially from those
indicated by such forward-looking statements, including, among
other factors, local conditions such as supply 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, significant downsizing of or bankruptcy of a
major tenant; redevelopment and construction activities may not
achieve a desired return on investment; our ability to buy or sell
assets on commercially reasonable terms; our ability to complete
acquisitions or dispositions of assets under contract; our ability
to secure equity or debt financing on commercially acceptable terms
or at all; our ability to enter into definitive agreements with
regard to our financing and joint venture arrangements or our
failure to satisfy conditions to the completion of these
arrangements; the success of our deleveraging strategy; and any
impact or results from the Company's portfolio transition or any
change in strategy. For additional factors that could cause the
results of the Company to differ materially from those indicated in
the forward-looking statements, please refer to the Company's Form
10-K for the year ended December 31,
2016. The Company undertakes no obligation to publicly
revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof.
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SOURCE DDR Corp.