By Andrea Heisinger
New York, March 16 - Developers Diversified Realty Corp. sold an upsized $300 million of 7.5% seven-year split-rated senior unsecured notes on Tuesday to yield 7.5%, a source away from the sale said.
The size was originally $250 million.
The notes (Baa3/BB/) priced at 99.995 and have a spread of 437.4 basis points over Treasuries. There is a make-whole call of 50 bps over Treasuries.
Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and UBS Investment Bank ran the books.
Senior co-managers were Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., KeyBanc Capital Markets Inc., Morgan Stanley & Co. Inc., U.S. Bancorp Investments and Wells Fargo Securities.
Co-managers were BNY Mellon Capital Markets LLC, Daiwa Securities Americas Inc., ING Financial Markets, Morgan Keegan & Co. Inc., PNC Capital Markets, RBS Securities Inc. and Scotia Capital.
The proceeds will be used to repay debt.
The real estate investment trust is based in Beachwood, Ohio.
| Issuer: | Developers Diversified Realty Corp.
|
| Issue: | Senior unsecured notes
|
| Amount: | $300 million, upsized from $250 million
|
| Maturity: | April 1, 2017
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc., UBS Investment Bank
|
| Senior co-managers: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., KeyBanc Capital Markets Inc., Morgan Stanley & Co. Inc., U.S. Bancorp Investments, Wells Fargo Securities
|
| Co-managers: | BNY Mellon Capital Markets LLC, Daiwa Securities Americas Inc., ING Financial Markets, Morgan Keegan & Co. Inc., PNC Capital Markets, RBS Securities Inc., Scotia Capital
|
| Coupon: | 7.5%
|
| Price: | 99.995
|
| Yield: | 7.5%
|
| Spread: | Treasuries plus 437.4 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | March 16
|
| Settlement date: | March 19
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB
|
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