), a real estate investment trust (REIT), recently priced an
underwritten public offering of unsecured senior notes worth $300
million at 99.397%, with a yield to maturity of 3.447%. The
notes, scheduled to mature in 2023, bear an interest rate of
3.375%, which is payable semi-annually on May 15 and November
15. The offering is projected to close by May 23, subject to
customary closing conditions.
DDR intends to utilize a major share of net proceeds from the
notes offering to finance part of the cash expenses associated
with the recently inked acquisition deal. Notably, on May 15, DDR
agreed to buy 30 of 44 shopping centers from its existing joint
The Blackstone Group L.P.
) for $1.46 billion. In addition, the company plans to use the
remaining amount to pay off debt and for other corporate
Several banking giants such as - UBS Securities LLC, Jefferies
LLC, RBS Securities Inc. of
The Royal Bank of Scotland Group plc
), Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.
) - served as joint book-running managers for the
We expect this underwritten public offering to enable DDR to
attain financial flexibility and position it favorably to pursue
investment opportunities and acquisitions, which will go a long
way in enhancing top-line growth.
Last month, DDR reported first-quarter 2013 operating FFO
(funds from operations) per share of 27 cents. This was in line
with the Zacks Consensus Estimate and surpassed the year-ago
figure of 24 cents.
Strategic acquisitions made in the past 2 years aided the
year-over-year growth. Moreover, as of Mar 31, 2013, DDR had
$18.9 million of cash compared with $31.2 million as of Dec 31,
Currently, DDR carries a Zacks Rank #3 (Hold).
Note: FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.
BLACKSTONE GRP (BX): Free Stock Analysis
DDR CORP (DDR): Free Stock Analysis Report
ROYAL BK SC-ADR (RBS): Get Free Report
US BANCORP (USB): Free Stock Analysis Report
To read this article on Zacks.com click here.