By Abigail W. Adams
Portland, Me., Nov. 7 – Simon Property Group LP subsidiary Simon Global Development BV priced €750 million three-year bonds exchangeable for Klepierre SA shares at par to yield 3.5% with an initial exchange premium of 20%, according to a company news release.
Pricing came at the cheap end of price talk for a coupon of 2.75% to 3.5% and in line with talk for an initial exchange premium of 20%.
J.P. Morgan Securities LLC and Barclays are joint global coordinators and bookrunners for the Regulation S offering.
BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are also joint bookrunners.
The exchangeable bonds will be guaranteed by Simon Property Group, which owns 22.4% of the outstanding shares of Klepierre.
Proceeds will be used for general corporate purposes, including the repayment of debt.
Simon Property Group is an Indianapolis-based real estate investment trust focused on dining, entertainment, shopping and mixed-use destination properties.
Klepierre is a Paris-based REIT and mall operator.
| Issuer: | Simon Global Development BV
|
| Guarantor: | Simon Property Group LP
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| Amount: | €750 million
|
| Issue: | Bonds exchangeable for Klepierre SA stock
|
| Maturity: | Three years
|
| Global coordinators: | J.P. Morgan Securities LLC and Barclays
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 3.5%
|
| Price: | Par
|
| Yield: | 3.5%
|
| Exchange premium: | 20%
|
| Exchange price: | €27.2092
|
| Pricing date: | Nov. 7
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| Settlement date: | Nov. 14
|
| Distribution: | Regulation S
|
| Talk: | Coupon of 2.75% to 3.5% and initial exchange premium of 20%
|
| Stock symbol: | Euronext: LI
|
| Stock reference price: | €22.6743
|
| Market capitalization: | €6.463 billion
|
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