Developers Diversified greenshoe exercised, lifts notes $45 million

By Melissa Kory

Cleveland, Nov. 5 - Developers Diversified Realty Corp.'s underwriters exercised their $45 million over-allotment option for its offering of 1.75% convertible senior notes due 2040, lifting the total issue to $350 million.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc. and UBS Securities LLC were joint bookrunners. KeyBanc Capital Markets Inc., RBC Capital Markets Corp., Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. were senior co-managers. Daiwa Capital Markets America Inc., FBR Capital Markets & Co., ING Financial Markets LLC and RBS Securities Inc. were co-managers.

The original $305 million was priced after the close on Nov. 1 to yield 1.75% with an 27.5% initial conversion premium.

Proceeds will be used to reduce balances on its corporate revolving credit facilities and for general corporate purposes.

Cleveland-based Developers Diversified owns and manages roughly 690 retail operating and development properties.

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