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DDR Refinances, Upsizes $1 Billion Revolving Credit Facilities

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DDR Corp., an owner and manager of 298 value-oriented shopping centers representing 100 million square feet in 34 states and Puerto Rico, recently revealed that it had refinanced its two revolving credit facilities, increasing borrowing capacity to $1 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.


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