Developers Diversified Announces Completion of Cash Tender Offers

Developers Diversified Announces Completion of Cash Tender Offers

CLEVELAND, OH, Sep 17, 2009 (MARKETWIRE via COMTEX News Network) -- Developers Diversified Realty (NYSE: DDR) announced today that it has completed the purchase of approximately $250 million aggregate principal amount of its Senior Unsecured Notes through the previously announced cash tender offers that commenced August 13, 2009. The following series of Notes were accepted for an
aggregate consideration of approximately $228 million, excluding accrued interest:

Aggregate               Total
                                            Principal              Consid-
                              Outstanding    Amount                eration
                               Principal  Accepted for  Cash Spend   per
     Notes         CUSIP No.   Amount(1)    Purchase    Required(2) Note(3)
----------------- ---------- ------------ ------------ ------------ ------
2010 Notes
  5.00% Notes
   due 2010        251591AL7 $193,574,000   $42,295,000  $42,448,000  $985
  4.625% Notes
   due 2010        251591AG8 $259,776,000   $32,142,000  $31,528,000  $975
2011 and 2012 Notes
  5.25% Notes
   due 2011        251591AK9 $185,169,000    $4,442,000   $4,274,000  $940
  5.375% Notes
   due 2012        251591AN3 $346,575,000  $123,108,000 $113,591,000  $900
2015 and 2018 Notes
  5.50% Notes
   due 2015        251591AM5 $200,000,000   $30,329,000  $25,486,000  $820
  7.50% Notes
   due 2018        25159NAW5 $100,000,000   $17,804,000  $15,572,000  $850
                                           ------------ ------------
Total                                      $250,120,000 $232,899,000
(1)  Prior to consummation of tender offers.
(2)  Includes accrued interest.
(3)  Per $1,000 principal amount of Notes accepted for purchase. Clearing
     premium per $1,000 principal amount of Notes was $25 for the 2010
     Notes, $0 for the 2011 and 2012 Notes and $20 for the 2015 and 2018
     Notes. Excludes accrued interest.

The tender offer for the 2015 and 2018 Notes expired at midnight, New York City time, on September 11, 2009. The tender offer for the 2010 Notes and the tender offer for the 2011 and 2012 Notes expired at midnight, New York City time, on September 16, 2009.
The aggregate consideration for the Notes accepted in the tender offers, including accrued interest, was approximately $233 million.
David Oakes, Developers Diversified's Senior Executive Vice President of Finance and Chief Investment Officer, commented, "We are pleased with the results of our tender offer, as we continue to opportunistically repurchase our debt at discounts to par, which is one of many leverage reducing initiatives underway."
Goldman, Sachs & Co. acted as the dealer manager for the tender offers.
Developers Diversified as of June 30, 2009 owned and managed approximately 690 retail operating and development properties in 45 states, plus Puerto Rico, Brazil and Canada totaling approximately 151 million square feet. The Company is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops and leases shopping centers. Additional information about Developers Diversified is available on the Internet at http://www.ddr.com.

Contact:
Kate Deck
Investor Relations Director
Developers Diversified Realty
Main: (216) 755-5500
E-mail: Email 

Developers Diversified Announces Progress on De-Leveraging Initiatives and Provides Updates on Recent Company Activities

Developers Diversified Announces Progress on De-Leveraging Initiatives and Provides Updates on Recent Company Activities

CLEVELAND, OH, Sep 21, 2009 (MARKETWIRE via COMTEX News Network) -- Developers Diversified Realty (NYSE: DDR) today announces progress on de-leveraging initiatives and provides the following updates on recent company activities:

--  Equity sale to Otto Family: The second tranche of 15 million common
    shares was sold to the Otto family for $60 million on September 18, 2009,
    completing the transaction announced in February 2009 to sell 30 million
    shares to the Otto Family.  An additional 1.8 million common shares were
    also issued, representing dividends paid since the date of the agreement.
    Warrants for an additional five million common shares were issued at the
    time of closing at $6.00 per share as per the agreement.  The warrants,
    aggregating 10 million in total, may be exercised at the discretion of the
    Otto Family any time within five years of issuance.  Additional information
    about the Otto Family and the common share sale can be found in a press
    release dated February 23, 2009.

--  New director appointment: In conjunction with the closing of the second
    tranche of equity described above, the Company's Board of Directors elected
    Dr. Thomas Finne as a new director.  Dr. Finne was appointed to the
    Dividend Declaration Committee.  The Board of Directors now consists of 11
    members, four of whom (Dr. Thomas Finne, Mr. James Boland, Mr. Daniel
    Hurwitz and Dr. Volker Kraft) have joined the Board in the past six months.

--  Equity issuance: Between August 10 and September 17, the Company sold
    approximately 18.4 million common shares for approximately $157 million
    through the common equity program established through BNY Mellon Capital
    Markets, LLC, completing the $200 million program established in late 2008.

--  Asset sales: Year to date, the Company has generated over $439 million in
    gross proceeds from asset sales, $260 million of which closed during the
    third quarter.  In conjunction with the sales this year, $151 million of
    mortgage debt was eliminated.  The Company's share of proceeds year to date
    is $289 million gross and $230 million net of mortgage debt eliminated.
    The Company has an additional $192 million of assets under contract for
    sale or subject to letter of intent, most of which are expected to close in
    2009.

--  Senior unsecured note purchases: In addition to the tender offers for
    unsecured notes that retired $250 million aggregate principal amount of
    debt on September 14 and 17, the Company purchased $38.7 million of its
    convertible senior unsecured notes in the third quarter at a weighted
    average 84% of par.  Including the notes tendered in the tender offer and
    notes bought on the open market, the total discount to par achieved was
    approximately $28 million for the third quarter and approximately $164
    million year to date.

--  Macquarie DDR Trust joint venture: The Company has liquidated its entire
    equity interest in Macquarie DDR Trust (ASX: MDT).  In addition, the
    Company anticipates that the redemption of its interest in the DDR
    Macquarie Fund in exchange for 100% ownership in three assets will occur
    early in the fourth quarter, subject to the receipt of approvals from MDT
    unitholders.  Once the redemption is complete, the Company will no longer
    share in over $1 billion of mortgage debt owed by the DDR Macquarie Fund.

--  Mortgage financing: As previously disclosed, the Company continues to
    make progress on two large mortgage financings, each secured by a pool of
    assets, and now expects that if both were completed, proceeds would exceed
    the original guidance of $600 million.  The Company expects to close on the
    first new mortgage loan of approximately $400 million early in the fourth
    quarter. The Company is working to structure a large portion of the loans
    to be TALF-eligible.

--  Operating FFO guidance lowered: As a result of these transactions that
    have reduced leverage well in excess of prior guidance, the Company has
    lowered 2009 operational guidance, excluding certain non-recurring and one-
    time items, to $1.90-$2.00 per share from $2.00-$2.15 per share.

David Oakes, Senior Executive Vice President of Finance and Chief Investment Officer, commented, "The above transactions and financings represent our continued commitment to improve liquidity, lower leverage and simplify our structure. We are pleased by what we have accomplished thus far in 2009 and we look forward to continuing to execute upon the capital plan that we have previously outlined."