Developers Diversified Realty Offers $400 Million Commercial Mtge
Deal
By Anusha Shrivastava, Of DOW JONES NEWSWIRES
NEW YORK-(Dow Jones)- Property owner Developers Diversified Realty Corp. (DDR)
is in the market with a much anticipated commercial mortgage-backed securities
deal.
The bond, dubbed 2009-DDR1, is eligible for financing under the Federal
Reserve's program to boost the commercial mortgage-backed market and is the
first newly created CMBS deal in more than a year.
Earlier this month, the Cleveland, Ohio-based developer said it had closed on
a new first mortgage financing from an affiliate of Goldman Sachs Group Inc. (
GS). The five-year loan is secured by 28 shopping centers.
Goldman Sachs is lead manager on the deal, which has three tranches. The
largest is a triple-A rated tranche worth $323.5 million, with a duration of
4.69 years.
The deal is being marketed in time for the next round of financing under the
Fed's Term Asset-Backed Securities Loan Facility, or TALF. The deadline for
cheap loans to buy new and existing CMBS is Nov. 17.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@
dowjones.com
(END) Dow Jones Newswires
11-09-091006ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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