Developers Diversified prices 37.3 million public stock offering at $8.16 per share

Developers Diversified prices 37.3M stock offering

CLEVELAND — Developers Diversified Realty Corp. said Tuesday that it priced a public offering of about 37.3 million shares of its common stock at $8.16 per share.

The offering’s amount is an increase over the 36 million shares the real estate investment trust said late Monday that it planned to offer.

Developers expects to use the offering’s proceeds to pay back debt that is due soon and to lower balances on its revolving credit agreements.

The company said Monday that it would give the underwriters a 30-day option to buy up to an additional 5.4 million shares to cover any overallotments.

Developers currently has about 196.6 million shares outstanding, according to Thomson Reuters.

The offering is expected to close on Friday.

Shares of Developers Diversified Realty gained 55 cents, or 6.5 percent, to $8.88 in mornintg trading. The stock has traded between $1.38 and $10.66 over the last year.