By Sheri Kasprzak
New York, Nov. 10 - The Simon Property Group LP priced $1.2 billion of senior notes on Thursday in two tranches, according to a term sheet.
The sale included $500 million of five-year notes and $700 million of 10-year notes.
The five-year notes were priced at a spread of Treasuries plus 195 basis points. The notes were priced at 99.768 to yield 2.847%.
The notes feature a make-whole at Treasuries plus 35 bps and are callable at par beginning Oct. 30, 2016.
The 10-year notes were priced at a spread of Treasuries plus 215 bps. The notes were priced at 99.689 to yield 4.163%.
The securities feature a make-whole call at Treasuries plus 35 bps and are callable at par beginning Sept. 1, 2021.
The joint bookrunners for the notes (A3/A-/) were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC.
The co-managers were Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC, SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
Proceeds from the deal will be used to repay the outstanding U.S. dollar balance of its senior unsecured credit facility. The remainder will be used for general corporate purposes.
Based in Indianapolis, Simon Property Group is a real estate company.
| Issuer: | Simon Property Group LP
|
| Issue: | Senior notes
|
| Amount: | $1.2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Co-managers: | Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC, SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Pricing date: | Nov. 10
|
| Settlement date: | Nov. 16
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 30, 2017
|
| Coupon: | 2.8%
|
| Price: | 99.768
|
| Yield: | 2.847%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole any time at Treasuries plus 35 bps or at par on or after Oct. 30, 2016
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | Dec. 1, 2021
|
| Coupon: | 4.125%
|
| Price: | 99.689
|
| Yield: | 4.163%
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Make-whole at any time at Treasuries plus 35 bps or at par on or after Sept. 1, 2021
|
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