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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