Monday, September 28, 2009

Developers Digging For Repentance

DDR sells $300 mm of corporate debt at 9.75% yield, maturing in March 2016. They have two corporate issues maturing next year totaling $378.6mm outstanding: a $151mm 5% 5/3/2010, and a $227.6mm 4 5/8% 8/1/2010; both BB rated.

They also completed their 30mm share sale to the Otto family with the final 15mm sale completed last week. The WSJ article also noted that they have sold $439mm of assets, and paid down $250mm in debt ($151 mm was mortgage debt). They've also issued additional equity around 1.8mm shares.

To our knowledge, they're still working on a two loan refinance of a portfolio of mortgages in the amount of $600mm (one is $400mm and expected to close in the 4th quarter).

According to the Ukiah Daily Journal, they're greasing the political wheels to get favorable zoning on some undeveloped land. They're paying for the expensive grease too - it sounds like.

At last check, they had over $500 mm due on CMBS mortgages in 2009 and 2010 - not sure how those have played out exactly to date. All in all, the firm is working pretty hard at tackling issues head on, harder than many others - will be interesting to see how successful they are in coming months.

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