Published on 11/30/2017 in the Prospect News Investment Grade Daily.
New Issue: Simon Property prices $1.35 billion two-tranche offering of notes
By Cristal Cody
Tupelo, Miss., Nov. 30 – Simon Property Group LP priced $1.35 billion of notes (A2/A) in two tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.
Simon Property Group priced $600 million of 2.75% notes due June 1, 2023 at 99.819 to yield 2.786% and a spread of 65 basis points over Treasuries.
The company sold $750 million of 3.375% 10-year notes at 99.214 to yield 3.469%, or a spread of Treasuries plus 105 bps.
Barclays, Citigroup Global Markets Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Goldman Sachs & Co., Jefferies LLC, Scotia Capital (USA) LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to finance the company’s planned optional redemption of all $750 million of 1.5% notes due Feb. 1, 2018 at par and for general corporate purposes.
The real estate investment trust for retail properties is based in Indianapolis.
| Issuer: | Simon Property Group LP
|
| Amount: | $1.35 billion
|
| Description: | Notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Goldman Sachs & Co., Jefferies LLC, Scotia Capital (USA) LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | BB&T Capital Markets, BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc., Huntington Investment Co., MUFG and Regions Securities LLC
|
| Trade date: | Nov. 30
|
| Settlement date: | Dec. 11
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Notes due 2023
|
| Amount: | $600 million
|
| Maturity: | June 1, 2023
|
| Coupon: | 2.75%
|
| Price: | 99.819
|
| Yield: | 2.786%
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Make-whole call before March 1, 2023 at Treasuries plus 10 bps; at par thereafter
|
|
|
| Notes due 2027
|
| Amount: | $750 million
|
| Maturity: | Dec. 1, 2027
|
| Coupon: | 3.375%
|
| Price: | 99.214
|
| Yield: | 3.469%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before Sept. 1, 2027 at Treasuries plus 20 bps; at par thereafter
|
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