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DDR Closes on $1.35 Billion Mortgage Loan

Financing Associated with the Spin-Off of 50 Properties into a New REIT
February 15, 2018
DDR Corp. (NYSE:DDR), closed on a $1.35 billion mortgage associated with its planned spin-off of a portfolio of 50 assets, including all of its Puerto Rico portfolio, into a separate publicly traded REIT to be named Retail Value Trust Inc.

The loan is collateralized by mortgage liens on the 38 continental U.S. properties; a pledge of the equity interests in the 12 Puerto Rico assets; as well as a pledge of the cash flows from the Puerto Rico assets.

The loan was provided by Column Financial Inc., an affiliate of Credit Suisse AG, JP Morgan and Wells Fargo. The loan is for five years fully extended with a variable interest rate.

Proceeds from the loan are expected to be used to repay debt at DDR.

Retail Value Trust eventually expects to sell the properties over the next two to three years to pay off the new loan. Some of the company’s assets are already being placed on the market for sale even prior to the filing of the new REIT's registration.

The assets have a combined gross book value of approximately $3 billion as of Sept. 30, 2017.

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