By Aleesia Forni
Virginia Beach, Sept. 3 – Simon Property Group LP sold $1.3 billion of senior notes (A2/A/) in tranches due 2024 and 2044 on Wednesday, according to a market source.
The company sold $900 million of 3.75% notes due 2024 at 99.804 to yield 3.398%, or Treasuries plus 100 basis points.
A second tranche was $400 million of 4.25% 30-year bonds priced at 99.409 to yield 4.285%, or Treasuries plus 115 bps.
Both tranches priced tighter than price talk.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBS Securities Inc. are the joint bookrunners.
Proceeds will be used to fund a tender offer and for general corporate purposes.
The real estate investment trust for retail properties is based in Indianapolis.
| Issuer: | Simon Property Group LP
|
| Issue: | Senior notes
|
| Amount: | $1.3 billion
|
| Joint bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Trade date: | Sept. 3
|
| Settlement date: | Sept. 10
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | Oct. 1, 2024
|
| Coupon: | 3.75%
|
| Price: | 99.804
|
| Yield: | 3.398%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 110 bps to 115 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to July 1, 2024, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $400 million
|
| Maturity: | Oct. 1, 2044
|
| Coupon: | 4.25%
|
| Price: | 99.409
|
| Yield: | 4.285%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 130 to 135 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to April 1, 2044, then callable at par
|
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