DDR Corp. DDR, the Beachwood, OH-based retail real estate investment trust (“REIT”), recently announced the pricing of $400 million worth senior unsecured notes. This move is expected to lend flexibility to the company’s balance sheet position, going forward.
The senior notes, bearing a rate of 4.250%, will be due in 2026. Interest payment on these notes will be made semiannually on Feb 1 and Aug 1 of each year, with the first payment due on Feb 1, 2016. DDR plans to utilize the proceeds generated from the offering to repay debts under its unsecured credit facility as well as meet general corporate needs. The latter may include repayment of secured and unsecured debts from time to time.
Further, the REIT may utilize the proceeds to meet cash obligations related to buyback, redemption or conversion of convertible senior notes due 2040. The offering is likely to close on or around Oct 21, 2015, subject to certain customary conditions.
DDR acquires, owns, develops, redevelops, leases and manages shopping centers, especially in high-growth areas of the U.S. In addition, the company engages in origination and acquisition of loans and debt securities, which are generally collateralized directly or indirectly by shopping centers.
DDR currently carries a Zacks Rank #3 (Hold).
Investors interested in the retail REIT industry may consider stocks like Agree Realty Corp. ADC, American Assets Trust, Inc. AAT and CBL & Associates Properties Inc. CBL. All three stocks hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment