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DDR refinances with $815 million revolvers, $400 million term loan
By Angela McDaniels
Tacoma, Wash., Jan. 17 - DDR Corp. refinanced its two senior revolving credit facilities due February 2016 and its senior secured term loan due September 2014, according to a company news release.
The new $750 million revolver was arranged by J.P. Morgan Securities LLC and Wells Fargo Securities, LLC. It has an initial maturity of April 2017, a borrower option to extend an additional year and contains an accordion feature that provides for $1.25 billion of potential total capacity.
DDR also refinanced its $65 million revolver provided by PNC Bank, NA to match the terms of the $750 million revolver.
The company said that pricing on both refinanced revolvers was reduced and is currently Libor plus 140 basis points, a decrease of 25 bps from the previous rate. The rate is determined based on DDR's credit ratings from Moody's and Standard & Poor's. The annual facility fee for both revolvers has been reduced to 30 bps from 35 bps.
Term loan refinanced
In addition, DDR refinanced its $400 million senior secured term loan due September 2014. The new secured term loan was arranged by KeyBanc Capital Markets and RBC Capital Markets. It has an initial maturity of April 2017 with a borrower option to extend an additional year.
Pricing on the new term loan is currently Libor plus 155 bps, a decrease of 15 bps from the previous rate, and is determined based on DDR's credit ratings.
During the fourth quarter of 2012, the old term loan was reduced to $400 million from $500 million using proceeds from DDR's reopening of its senior notes due 2022.
"These refinancings are consistent with our stated objectives to extend duration and lower our cost of capital as we continue to reduce our corporate risk profile," DDR president and chief financial officer David Oakes said in the release.
DDR is a real estate investment trust based in Beachwood, Ohio, that owns and manages shopping centers.
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