By Cristal Cody
Chicago, Aug. 10 – Simon Property Group, LP gave details of its $1.25 billion sale of notes due Jan. 15, 2027 and Jan. 15, 2032 (A3/A-), according to a news release Monday.
The company priced $550 million of 1.375% notes due 2027 at 99.871 to yield 1.4%.
The notes priced with a 60 basis points spread over Treasuries. Talk on the 2027 tranche was in the Treasuries plus 80 bps area, a market source noted.
The company also priced $700 million of 2.25% notes due 2032 at 99.275 to yield 2.329%.
Pricing with a 100 bps spread, talk on the 2032 notes was in the Treasuries plus 120 bps area.
The 2027 notes will have a make-whole redemption option at Treasuries plus 10 bps before Oct. 15, 2026, then a par call. The 2032 notes will have a make-whole redemption option at Treasuries plus 15 bps before Oct. 15, 2031, then a par call.
BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC and TD Securities (USA) LLC are working as bookrunners for the offering. BBVA Securities Inc., BNP Paribas Securities Corp., Mizuho Securities USA LLC, PNC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. are also bookrunners.
Proceeds will be used to fund the planned optional redemption of the company’s 2.35% notes due January 2022, 2.625% notes due June 2022 and 2.75% notes due February. Any remaining proceeds will be used to repay unsecured debt, including under the company’s global commercial paper note program.
The real estate investment trust for retail properties is based in Indianapolis.
| Issuer: | Simon Property Group, LP
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| Amount: | $1.25 billion
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| Description: | Notes
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC, BBVA Securities Inc., BNP Paribas Securities Corp., Mizuho Securities USA LLC, PNC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc.
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| Co-managers: | BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc. and Regions Securities LLC
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| Trade date: | Aug. 9
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| Settlement date: | Aug. 18
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Distribution: | SEC registered
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| 2027 notes
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| Amount: | $550 million
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| Maturity: | Jan. 15, 2027
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| Coupon: | 1.375%
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| Price: | 99.871
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| Yield: | 1.4%
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| Spread: | Treasuries plus 60 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps until Oct. 15, 2026, then a par call three months before maturity
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| Price guidance: | Treasuries plus 80 bps area
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| 2032 notes
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| Amount: | $700 million
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| Maturity: | Jan. 15, 2032
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| Coupon: | 2.25%
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| Price: | 99.275
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| Yield: | 2.329%
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| Spread: | Treasuries plus 100 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps until Oct. 15, 2031, then a par call three months before maturity
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| Price guidance: | Treasuries plus 120 bps area
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