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Fitch Rates DDR's $305MM 1.75% Convertible Senior Notes 'BB'; Outlook Stable

^{Published on 2010-11-02 15:30:27 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings has assigned a 'BB' rating to the $305 million aggregate principal amount of 1.75% convertible senior notes due 2040 issued by Developers Diversified Realty Corporation (NYSE: DDR). Net proceeds from the offering are estimated to be $298.6 million, or $342.7 million if the underwriters' over-allotment option is fully exercised. The conversion price of $16.38 per share is 27.5% in excess of DDR's closing common share price on Nov. 1, 2010 of $12.85. The notes may be put back to DDR by holders on certain dates, the first of which is Nov. 15, 2015. DDR intends to use the net proceeds of the offering to repay debt and for general corporate purposes. DDR's Issuer Default Rating is 'BB' and the Rating Outlook is Stable.

For additional information, please refer to Fitch's full rating report titled 'Developers Diversified Realty Corporation,' dated May 13, 2010 at '[ www.fitchratings.com ]'.

DDR is a self-administered and self-managed real estate investment trust (REIT), in the business of owning, managing and developing a portfolio of shopping centers. As of Sept. 30, 2010, DDR owned and managed approximately 590 retail operating and development properties in 41 states, Brazil, Canada and Puerto Rico totaling more than 134 million square feet. As of Sept. 30, 2010, DDR had $9.3 billion of gross book assets, a total market capitalization of $7.8 billion, and common equity market capitalization of $2.9 billion.

Additional information is available at '[ www.fitchratings.com ]'.

Applicable Criteria and Related Research:

--Corporate Rating Methodology, Aug. 13, 2010;

--Criteria for Rating U.S. Equity REITs and REOCs, April 16, 2010;

--Equity Credit for Hybrids & Other Capital Securities - Amended, Dec. 29, 2009;

--Rating Hybrid Securities, Dec. 29, 2009;

--Recovery Rating and Notching Criteria for REITs, Dec. 23, 2009.

Applicable Criteria and Related Research:

Criteria for Rating U.S. Equity REITs and REOCs

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=510465 ]

Corporate Rating Methodology

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646 ]

Equity Credit for Hybrids & Other Capital Securities - Amended

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493112 ]

Rating Hybrid Securities

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493086 ]

Recovery Rating and Notching Criteria for REITs

[ http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=492828 ]

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