By Stephanie N. Rotondo
Phoenix, July 18 - DDR Corp. is offering $200 million of 6½% class J cumulative redeemable perpetual preferred shares, the company said in a press release on Wednesday.
Price talk was originally around 6 5/8%, according to a trader.
J.P. Morgan Securities LLC is the bookrunning manager. BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the co-managers.
The preferreds (expected Ba1/B/BB-) have a liquidation preference of $500 each. The securities will be issued in the form of $25 depositary shares each representing a 1/20th interest in a preferred.
DDR can redeem the shares on or after Aug. 1, 2017 or in the event of a change of control.
Dividends are payable quarterly on the 15th day of January, April, July and October.
The company will apply to list the preferred stock on the New York Stock Exchange under the ticker symbol "DDRPJ." Settlement is expected Aug. 1.
Proceeds will be used to redeem the company's 7½% class I cumulative redeemable preferreds. Any remaining funds will be used for general corporate purposes, including a possible partial redemption of the 7 3/8% class H cumulative redeemable preferred stock.
DDR is a Beachwood, Ohio-based real estate investment trust.
| Issuer: | DDR Corp.
|
| Securities: | Class J cumulative redeemable preferred stock
|
| Amount: | $200 million, or 8 million shares
|
| Maturity: | Perpetual
|
| Dividend: | 6½%
|
| Price: | Par of $25
|
| Call option: | On or after Aug. 1, 2017 or in the event of a change of control
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.
|
| Expected ratings: | Moody's: Ba1
|
| Standard & Poor's: B
|
| Fitch: BB-
|
| Pricing date: | July 18
|
| Settlement date: | Aug. 1
|
| Expected listing: | NYSE: DDRPJ
|
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