In order to reduce its debt,
) priced the underwritten public offering of $300 million worth
3.500% senior unsecured notes at 99.327% of the principal amount.
The offering is anticipated to close by Nov 26, 2013, upon
fulfillment of customary closing conditions.
The senior unsecured notes, due 2021, have a yield to maturity
of 3.607%. The interest on the notes is to be paid semi annually
- Jan 15 and Jul 15. The first interest is payable on Jul 15,
In particular, this retail real estate investment trust (REIT)
intends to utilize the net proceeds to pay off its outstanding
balance under its unsecured revolving credit facility worth $750
million. The remaining amount will be used to meet other
corporate needs, including secured and unsecured debt
Notably, a consortium of leading financial institutions is
assisting DDR in this underwritten public offering. Among them,
Wells Fargo Securities, LLC of
Wells Fargo & Co.
), Scotia Capital (USA) Inc., Citigroup Global Markets Inc. of
), RBS Securities Inc. and U.S. Bancorp Investments, Inc. of
), are serving as the joint book-running managers.
For DDR, whose cash amounted to $35.4 million as of Sep 30,
2013, the aforementioned transaction is strategic fit, as we
expect it to provide greater financial flexibility to the
company. Notably, DDR recently received a rating upgrade from
Moody's Investors Service.
The company now enjoys senior unsecured and preferred equity
ratings of Baa2 and Baa3, which were raised from Baa3 and Ba1,
respectively. Further, the rating outlook was revised to stable
The uptick was an acknowledgement of DDR's high quality
property portfolio and its efforts towards enhancing its value.
These activities preserve investor confidence in the stock and
help boost its creditworthiness in the market.
DDR currently carries a Zacks Rank #3 (Hold).
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