Developers Diversified holders tender $663.92 million of six notes series as of early tender date

By Susanna Moon

Chicago, Aug. 31 - Developers Diversified Realty said it received tenders of $663.92 million of six series of its notes as of 5 p.m. ET on Aug. 27, the early participation date, in the three oversubscribed Dutch auction tender offers to purchase up to $200 million of the notes.

In the first offer for up to $70 million of its 5% notes due 2010 and 4 5/8% notes due 2010, investors tendered $89,420,000 of the 5% notes and $134,997,000 of the 4 5/8% notes.

In the second offer for up to $90 million of its 5¼% notes due 2011 and 5 3/8% notes due 2012, investors tendered $75,222,000 of the 5¼% notes and $229,777,000 of the 5 3/8% notes.

Finally, in the third offer for up to $40 million of its 5½% notes due 2015 and 7½% notes due 2018, holders tendered $88,389,000 of the 5½% notes and $46,119,000 of the 7½% notes.

The offers will end at midnight ET on Sept. 11. They began on Aug. 13.

"We continue to work diligently on our de-leveraging plan. Retiring debt at discounts to par value is one initiative in a multi-faceted approach to improving our balance sheet," David Oakes, Developers Diversified's senior executive vice president of finance and chief investment officer, said in a press release.

"We look forward to reporting additional progress in the coming months."

As previously reported, for each $1,000 principal amount, Developers said it will accept bids falling in the range of:

• $960 to $990 for the 5% notes;

• $950 to $980 for the 4 5/8% notes;

• $940 to $980 for the 5¼% notes;

• $900 to $940 for the 5 3/8% notes;

• $800 to $840 for the 5½% notes; and

• $830 to $870 for the 7½% notes.

All payouts include a $40 early participation payment for those who tender prior to 5 p.m. ET on Aug. 27.

The company said it will also pay accrued interest to the settlement date.

The offers are set to end at midnight ET on Sept. 11.

Goldman, Sachs & Co. is the dealer manager (800 828-3182 or call collect 212 902-5183). Global Bondholder Services Corp. is the information agent and depositary (866 952-2200 or call collect 212 430-3774).

Cleveland-based Developers Diversified owns and manages roughly 690 retail operating and development properties.

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