By Aleesia Forni
New York, Jan. 8 – Simon Property Group LP sold $1.35 billion of senior notes (A2/A/A) in tranches due 2021 and 2026 on Friday, according to a source away from the trade.
There was $550 million of 2.5% five-year notes sold at 99.918 to yield 2.516%. The notes sold with a spread of Treasuries plus 95 basis points.
Pricing came at the tightest side of the Treasuries plus 100 bps area guidance and inside initial talk set in the range of Treasuries plus 110 bps to 115 bps.
Also priced was $800 million of 3.3% 10-year notes at 99.401 to yield 3.371%, or Treasuries plus 125 bps.
Guidance was in the Treasuries plus 130 bps area, having firmed from the range of Treasuries plus 135 bps to 140 bps.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are the joint bookrunners.
Proceeds will be used for general business purposes, including to retire outstanding mortgage loans, to fund the redemption of its 6.1% notes due 2016 and to help repay $4 billion of revolving credit facility borrowings.
The real estate investment trust for retail properties is based in Indianapolis.
| Issuer: | Simon Property Group LP
|
| Issue: | Senior notes
|
| Amount: | $1.35 billion
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC
|
| Trade date: | Jan. 8
|
| Settlement date: | Jan. 13
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | July 15, 2021
|
| Coupon: | 2.5%
|
| Price: | 99.918
|
| Yield: | 2.516%
|
| Spread: | Treasuries plus 95 bps
|
| Price guidance: | Treasuries plus 100 bps area, tightened from Treasuries plus 110 bps to 115 bps
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | Jan. 15, 2026
|
| Coupon: | 3.3%
|
| Price: | 99.401
|
| Yield: | 3.371%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 130 bps area, tightened from Treasuries plus 135 bps to 140 bps
|
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