By Stephanie N. Rotondo
Seattle, May 30 – DDR Corp. priced $175 million of 6.375% class A cumulative redeemable preferred shares (expected ratings: Baa3/BB/BB) on Tuesday, a market source reported.
The deal came tighter than the 6.5% to 6.625% price talk and was increased from an expected $100 million.
Wells Fargo Securities LLC, RBC Capital Markets, Stifel Nicolaus & Co. Inc. and UBS Securities LLC are the joint bookrunners.
The preferreds will be issued as depositary shares representing a 1/20th interest.
The preferreds become redeemable on June 5, 2022 or upon a change of control at par plus accrued dividends.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “DDRPrA.”
The Beachwood, Ohio-based real estate investment trust will use the proceeds to repay debt – including its 4.75% notes due 2018 – and for general corporate purposes.
| Issuer: | DDR Corp.
|
| Securities: | Class A cumulative redeemable preferred stock
|
| Amount: | $175 million, or 7 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Wells Fargo Securities LLC, RBC Capital Markets, Stifel Nicolaus & Co. Inc. and UBS Securities LLC
|
| Dividend: | 6.375%
|
| Price: | Par of $25.00
|
| Yield: | 6.375%
|
| Talk: | 6.5% to 6.625%
|
| Call options: | On or after June 5, 2022, or upon a change of control at par plus accrued interest
|
| Pricing date: | May 30
|
| Settlement date: | June 5
|
| Expected ratings: | Moody’s: Baa3
|
| S&P: BB
|
| Fitch: BB
|
| Expected listing: | NYSE: DDRPrA
|
| Cusip: | 23317H870
|
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