By Andrea Heisinger
New York, Aug. 9 - Developers Diversified Realty Corp. priced an upsized $300 million of 7.875% 10-year senior unsecured notes on Monday to yield 8%, an informed source said.
The size was increased by $50 million, and the deal was more than two times oversubscribed with about $700 million on the books.
The notes (Baa3/BB/BB) priced at 99.139 with a spread of Treasuries plus 517.8 basis points. They are callable at a make-whole amount of Treasuries plus 50 bps.
J.P. Morgan Securities Inc. and Wells Fargo Securities ran the books.
Proceeds are being used to repay debt.
The real estate investment trust for shopping and business centers is based in Beachwood, Ohio.
| Issuer: | Developers Diversified Realty Corp.
|
| Issue: | Senior unsecured notes
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Sept. 1, 2020
|
| Bookrunners: | J.P. Morgan Securities Inc., Wells Fargo Securities
|
| Coupon: | 7.875%
|
| Price: | 99.139
|
| Yield: | 8%
|
| Spread: | Treasuries plus 517.8 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 12
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB
|
| Fitch: BB
|
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