Simon Property to repay revolver borrowings with new deal proceeds

New York, Nov. 15 – Simon Property Group, LP plans to repay borrowings under its revolving credit facility using proceeds from a three-tranche offering of new notes.

As of Sept. 30, the company had $415 million outstanding on the $3.5 billion facility although it said it subsequently used revolver borrowings to fund two note redemptions.

Draws on the revolver were used to fund the optional redemption of the company’s $364.3 million of 5.25% notes due 2016 in September and the optional redemption of the $500 million of 2.8% notes due 2017 in November, according to a 424B5 filing with the Securities and Exchange Commission.

Proceeds from the new deal will also be used to redeem the company’s $650 million of 10.35% notes due 2019.

The company intends to issue a notice of redemption before the new notes settle.

Proceeds from the new deal will also be used to fund the redemption in December of Simon Property’s $207.5 million of 5.875% notes due 2017.

A redemption notice for these notes was issued on Nov. 1.

Simon Property is an Indianapolis-based real estate investment trust focused on shopping malls.

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