DDR Refinances And Upsizes $1.0 Billion Revolving Credit Facilities
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.
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.
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.