Published on 10/14/2015 in the Prospect News Investment Grade Daily.
New Issue: DDR sells upsized $400 million of 4.25% notes due 2026 at Treasuries plus 237.5 bps
By Aleesia Forni
Virginia Beach, Oct. 14 – DDR Corp. priced an upsized $400 million of 4.25% senior notes on Wednesday with a spread of Treasuries plus 237.5 basis points, according to an FWP filing with the Securities and Exchange Commission.
Pricing was at 99.094 to yield 4.361%.
The issue (Baa2/BBB-/BBB-) was upsized from $300 million and came at the tight end of guidance.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC, RBC Capital Markets LLC and Scotia Capital are the bookrunners.
Proceeds will be used to repay debt under a $750 million unsecured revolving credit facility and for general corporate purposes, which may include the repayment of secured and unsecured debt from time to time. Proceeds may also be used to satisfy cash obligations in connection with the repurchase, redemption or conversion of convertible notes.
The real estate investment trust is based in Beachwood, Ohio.
| Issuer: | DDR Corp.
|
| Amount: | $400 million, upsized from $300 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 1, 2026
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc.
|
| Senior co-managers: | BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., KeyBanc Capital Markets Inc., Regions Securities LLC, U.S. Bancorp Investments, Inc.
|
| Co-managers: | The Huntington Investment Co., FTN Financial Securities Corp., SMBC Nikko Securities America, Inc.
|
| Coupon: | 4.25%
|
| Price: | 99.094
|
| Yield: | 4.361%
|
| Spread: | Treasuries plus 237.5 bps
|
| Make-whole call: | Treasuries plus 40 bps prior to Nov. 1, 2025, then callable at par
|
| Trade date: | Oct. 14
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| Settlement date: | Oct. 21
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 240 bps area, tightened from Treasuries plus 262.5 bps area
|
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