Simon eyes notes in three parts, including tap of 3.5% notes due 2025

By Devika Patel

Knoxville, Tenn., July 6 – Simon Property Group, LP intends to offer fixed-rate notes in three tranches, including an add-on to its 3.5% senior notes (A2/A) due Sept. 1, 2025, according to a 424B5 filing with the Securities and Exchange Commission.

The company sold $600 million of the 3.5% notes at 99.354 to yield 3.577% in a sale that priced on Aug. 10, 2015 and settled on Aug. 17, 2015. The issue sold with a spread of 135 basis points over Treasuries.

The new notes have a make-whole call. The 3.5% notes have a make-whole call at Treasuries plus 20 bps before June 1, 2025 and then a par call.

BNP Paribas Securities Corp., Jefferies LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc. are the bookrunners.

Proceeds will be used for the planned optional redemption at par of the company’s $500 million of 2.5% notes due Sept. 1, 2020 and its €375 million of 2.375% notes due Oct. 2, 2020 and for general corporate purposes, including to repay unsecured debt, including borrowings under the company’s $4 billion senior unsecured revolving credit facility, its $3.5 billion supplemental senior unsecured revolving credit facility and its dollar-denominated debt under its global unsecured commercial paper note program.

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

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