Published on 1/12/2015 in the Prospect News Investment Grade Daily.
New Issue: DDR prices upsized $500 million 10-year senior notes at 180 bps spread
By Aleesia Forni
Virginia Beach, Jan. 12 – DDR Corp. priced an upsized $500 million of 3.625% 10-year senior notes (Baa2/BBB-/BBB-) with a spread of Treasuries plus 180 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.26 to yield 3.714%.
The notes sold at the tight end of price talk.
Deutsche Bank Securities Inc., Jefferies, Wells Fargo Securities LLC, BNY Mellon Capital Markets LLC, Goldman Sachs & Co. and RBS Securities Inc. were the bookrunners.
Proceeds will be used to repay debt under the company’s $350 million term loan and $750 million unsecured revolving credit facility and for general corporate purposes.
The real estate investment trust is based in Beachwood, Ohio.
| Issuer: | DDR Corp.
|
| Amount: | $500 million, upsized from $350 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 1, 2025
|
| Bookrunners: | Deutsche Bank Securities Inc., Jefferies, Wells Fargo Securities LLC, BNY Mellon Capital Markets LLC, Goldman Sachs & Co., RBS Securities Inc.
|
| Senior co-managers: | Capital One Securities, Inc., RBC Capital Markets, LLC, Regions Securities LLC, Scotia Capital (USA) Inc.
|
| Co-managers: | Evercore Group LLC, FTN Financial Securities Corp., the Huntington Investment Co., Sandler O’Neill + Partners LP, SMBC Nikko Securities America, Inc.
|
| Coupon: | 3.625%
|
| Price: | 99.26
|
| Yield: | 3.714%
|
| Spread: | Treasuries plus 180 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Nov. 1, 2024, then callable at par
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 22
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | 185 bps area, tightened from 190 bps to 195 bps
|
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