Simon Property to conduct three-part notes sale, including floaters; price talk emerges

By Devika Patel and Cristal Cody

Knoxville, Tenn., Jan. 4 – Simon Property Group, LP intends to offer notes in three tranches, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will be sold in one floating-rate tranche due in 2024 and two fixed-rate tranches due in 2024 and 2032.

A market source indicated price talk on the fixed-rate notes due Jan. 11, 2024 is in the Treasuries plus 65 basis points to 70 bps area, and talk on the floaters with the same maturity date is at SOFR plus an equivalent spread.

The notes due Feb. 1, 2032 are talked to yield in the Treasuries plus 130 bps area.

The floaters are callable at par plus interest after one year. The 2024 fixed-rate notes have a make-whole call until one month prior to maturity and then a par call. The 2032 fixed-rate notes have a make-whole call until three months prior to maturity and then a par call.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to repay debt under the company’s supplemental facility and for general corporate purposes.

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

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