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DDR Refinances Two Credit Facilities

Developers Diversified Realty Corp. closed on the refinancing of its two senior unsecured revolving credit facilities. A new $950 million unsecured facility, arranged by J.P. Morgan Securities LLC and Wells Fargo Securities LLC replaces DDR's $1.25 billion facility maturing in June 2011.

The new facility has an uncommitted accordion feature for a total facility of up to $1.2 billion and a 40-month term that expires February 28, 2014. DDR also closed on a new $65 million unsecured revolving credit facility provided solely by PNC Bank N.A., which replaces DDR's $75 million facility maturing in June 2011. This $65 million unsecured facility also has a 40-month term that expires February 28, 2014.

Pricing on both new revolving credit facilities is currently set at LIBOR plus 275 basis points and is determined based upon DDR's current corporate credit ratings from Moody's and S&P. There are no LIBOR floors. The covenants on the new facilities include an unencumbered net operating income yield test and several minor modifications to the previous facilities' covenants.

In conjunction with the closing of the new unsecured facilities, DDR modified its secured term loan, agented by KeyBank M.A., to conform to the amended covenants in the new unsecured revolving credit agreements. In addition, DDR made a voluntary prepayment of $200 million on the term loan leaving an outstanding balance of $600 million. The pricing on the term loan remains unchanged as of the closing of the amendment at LIBOR plus 120 basis points and the final maturity remains February 20, 2012.

In a separate deal, a joint venture between DDR and Israel-based Big Shopping Centers Ltd. bought the Marine Gateway commercial center in San Francisco for $36 million.

Big's U.S. subsidiary will own 75 percent of the property and Developers Diversified will own 25 percent and manage it. The Marine Gateway commercial center carries a $29 million loan, scheduled for repayment in March 2015. The loan will be deducted from the purchase price, resulting in a final price tag of $7 million, of which Big will pay $5.3 million.

This is the first acquisition by Big and DDR through their joint venture, which they set up earlier this year.

CBL & Associates Announces Closing of $102.1M Offering
CBL & Associates Properties Inc. has closed an underwritten public offering of 4.4 million depositary shares, each representing 1/10th of a share of its 7.375 percent Series D cumulative redeemable preferred stock with a liquidation preference of $25.00 per depositary share.

CBL has granted the underwriters of the offering a 30-day option to purchase up to an additional 660,000 depositary shares to cover over-allotments, if any. Including the shares issued in this offering, the company now has 17.7 million depositary shares outstanding, each representing 1/10th of a share of its 7.375 percent Series D cumulative redeemable preferred stock.

The securities are redeemable, in whole or in part, for $25.00 per depositary share, plus accrued and unpaid dividends, at any time at the option of the company.

To read more, please click this link.

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