Published on 3/1/2023 in the Prospect News Investment Grade Daily.
New Issue: Simon Property sells $1.3 billion of notes due 2033, 2053
By Wendy Van Sickle
Columbus, Ohio, March 1 – Simon Property Group, LP priced $650 million of 5.5% 10-year notes and $650 million of 5.85% 30-year notes (A3/A-) on Wednesday, according to FWP filings with the Securities and Exchange Commission.
The 5.5% notes due 2033 priced at 98.911 to yield 5.644%, or a spread 165 basis points over Treasuries.
The 5.85% notes due 2053 were sold at 99.106 to yield 5.914%, or a spread of 195 bps over Treasuries.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Scotia Capital (USA) Inc., BBVA Securities Inc., BNP Paribas Securities Corp., PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used to fund the planned optional redemption of the company’s 2.75% notes due June 2023 and the company’s floating-rate notes due January 2024 (with interest reset quarterly at compounded SOFR plus 43 bps, resulting in interest of 3.94% at Dec. 31, 2022) and to use any remaining net proceeds for general corporate purposes, including to repay other unsecured debt.
The real estate investment trust for retail properties is based in Indianapolis.
| Issuer: | Simon Property Group LP
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| Amount: | $1.3 billion
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| Issue: | Notes
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Scotia Capital (USA) Inc., BBVA Securities Inc., BNP Paribas Securities Corp., PNC Capital Markets LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc., Regions Securities LLC, Independence Point Securities LLC and Roberts and Ryan Investments, Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Trade date: | March 1
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| Settlement date: | March 8
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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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|
|
| 10-year notes
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| Amount: | $650 million
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| Maturity: | March 8, 2033
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| Coupon: | 5.5%
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| Price: | 98.911
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| Yield: | 5.644%
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| Spread: | Treasuries plus 165 bps
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| Call features: | Make-whole call before Dec. 8, 2032 at Treasuries plus 25 bps; par thereafter
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| Cusip: | 828807DU8
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|
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| 30-year notes
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| Amount: | $650 million
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| Maturity: | March 8, 2053
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| Coupon: | 5.85%
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| Price: | 99.106
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| Yield: | 5.914%
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| Spread: | Treasuries plus 195 bps
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| Call features: | Make-whole call before Sept. 8, 2052 at Treasuries plus 20 bps; thereafter at par
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| Cusip: | 828807DV6
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