Developers Diversified Realty Corporation Prices $300 Million of Senior Unsecured Notes

CLEVELAND, Aug. 9 /PRNewswire-FirstCall/ -- Developers Diversified Realty Corporation (the "Company") (NYSE: DDR) today announced the pricing of $300 million of senior unsecured notes in an underwritten public offering.  The offering consists of $300 million aggregate principal amount of 7.875% notes due September 2020.  The notes are being offered to investors at a price of 99.139% with a yield to maturity of 8.0%.  Interest on the notes will be paid semi-annually on March 1 and September 1.  The offering is expected to close on or about August 12, 2010, subject to customary closing conditions.

The net proceeds to the Company, after subtracting the underwriting discount and estimated offering expenses, are expected to be approximately $294.1 million, which the Company intends to use to reduce balances on its revolving credit facilities and/or collateralized term loan.

J.P. Morgan Securities Inc. and Wells Fargo Securities, LLC are serving as joint book-running managers; Citigroup Global Markets Inc., Deutsche Bank Securities Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. are serving as senior co-managers; and BNY Mellon Capital Markets, LLC, Goldman, Sachs & Co., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA), Inc., Morgan Keegan & Company, Inc., RBC Capital Markets Corporation, RBS Securities Inc., Santander Investment Securities Inc. and UBS Investment Bank are serving as co-managers for the offering.

A registration statement relating to the notes has been filed with and declared effective by the SEC.  The offering may be made only by means of a prospectus supplement and the accompanying prospectus.  A copy of the final prospectus supplement and accompanying prospectus relating to this offering may be obtained, when available, by contacting: J.P. Morgan Securities Inc. collect at 1-212-834-4533 or Wells Fargo Securities, LLC toll-free at 1-800-326-5897 or by email at [email protected].

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the notes or any other securities, nor will there be any sale of the notes or any other securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted.

About Developers Diversified Realty

Developers Diversified owns and manages approximately 620 retail operating and development properties in 42 states, Brazil, Canada and Puerto Rico. Totaling more than 137 million square feet, the Company's shopping center portfolio features open-air, value-oriented neighborhood and community centers, mixed-use centers and lifestyle centers located in prime markets with stable populations and high-growth potential. Developers Diversified is the largest landlord in Puerto Rico and owns a premier portfolio of regional malls in and around Sao Paulo, Brazil. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company.

SOURCE Developers Diversified Realty Corporation

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