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Published on 12/10/2012 in the Prospect News Investment Grade Daily.

New Issue: Simon Property sells $1.25 billion of notes in five-, 10-year tranches

By Andrea Heisinger

New York, Dec. 10 - Simon Property Group, LP sold $1.25 billion of notes (A3/A-/A-) in two tranches on Monday, an informed source told Prospect News.

A $750 million tranche of 1.5% five-year notes sold at 99.685 to yield 1.564% with a spread of Treasuries plus 95 basis points. There is a make-whole call at Treasuries plus 15 bps until Nov. 1, 2017 and a par call after that date.

The tranche was priced under Rule 144A and Regulation S.

There was $500 million of 2.75% 10-year notes priced at 99.446 to yield 2.813% with a spread of 120 bps over Treasuries. The notes have a make-whole call at 20 bps over Treasuries until Nov. 1, 2022 and a par call after that date.

Active bookrunners were Barclays, Citigroup Global Markets Inc. and UBS Securities LLC. Passive bookrunners were Goldman Sachs & Co., Morgan Stanley & Co. LLC and RBS Securities Inc.

Proceeds will be used for general corporate purposes and partnership purposes.

Simon Property last tapped the market with a $1.75 billion sale in three parts on March 8, 2012. That offering included a 3.375% 10-year note sold at 140 bps over Treasuries.

The real estate investment trust for retail properties is based in Indianapolis.

Issuer:Simon Property Group, LP
Issue:Notes
Amount:$1.25 billion
Bookrunners:Barclays, Citigroup Global Markets Inc., UBS Securities LLC (active), Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBS Securities Inc. (passive)
Co-managers:Fifth Third Securities Inc., Mitsubishi UFJ Securities (USA) LLC, SMBC Nikko Capital Markets Ltd., U.S. Bancorp Investments Inc.
Trade date:Dec. 10
Settlement date:Dec. 17
Ratings:Moody's: A3
Standard & Poor's: A-
Fitch: A-
Five-year notes
Amount:$750 million
Maturity:Feb. 1, 2018
Coupon:1.5%
Price:99.685
Yield:1.564%
Spread:Treasuries plus 95 bps
Call:Make-whole at Treasuries plus 15 bps to Nov. 1, 2017, par call after
Distribution:Rule 144A, Regulation S
10-year notes
Amount:$500 million
Maturity:Feb. 1, 2023
Coupon:2.75%
Price:99.446
Yield:2.813%
Spread:Treasuries plus 120 bps
Call:Make-whole at Treasuries plus 20 bps to Nov. 1, 2022, par call after
Distribution:Off shelf

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