Published on 9/4/2019 in the Prospect News Investment Grade Daily.
New Issue: Simon Property prices $3.5 billion offering of notes in three parts
Chicago, Sept. 4 – Simon Property Group, LP priced $3.5 billion of notes (A2/A) in three parts on Wednesday, according to FWP filings with the Securities and Exchange Commission.
Simon Property Group priced $1 billion of 2% five-year notes at 99.901 to yield 2.021% and a spread of 70 basis points over Treasuries.
The company sold $1.25 billion of 2.45% 10-year notes at 98.93 to yield 2.572%, or a spread of Treasuries plus 110 bps.
Additionally, the company sold $1.25 billion of 3.25% 30-year notes at 99.601 to yield 3.271%, or a spread of Treasuries plus 130 bps.
BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, Barclays, BBVA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Santander Investment Securities Inc., SG Americas Securities, LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to finance the company’s planned optional redemption of its €750 million of 1.5% notes due Feb. 1, 2018, 2.375% notes due Oct. 2, 2020, $900 million of 4.375% notes due March 1, 2021, $700 million of 4.125% notes due Dec. 1, 2021, $600 million of 3.375% notes due March 15, 2022, to repay some commercial paper and for general business purposes.
The real estate investment trust for retail properties is based in Indianapolis.
| Issuer: | Simon Property Group, LP
|
| Amount: | $3.5 billion
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| Description: | Notes
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, Barclays, BBVA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Santander Investment Securities Inc., SG Americas Securities, LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | ING Financial Markets LLC, MUFG, Regions Securities LLC and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 13
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Notes due 2024
|
| Amount: | $1 billion
|
| Maturity: | Sept. 13, 2024
|
| Coupon: | 2%
|
| Price: | 99.901
|
| Yield: | 2.021%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call before June 30, 2024 at Treasuries plus 12.5 bps; at par thereafter
|
|
|
| Notes due 2029
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| Amount: | $1.25 billion
|
| Maturity: | Sept. 13, 2029
|
| Coupon: | 2.45%
|
| Price: | 98.93
|
| Yield: | 2.572%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call before June 13, 2029 at Treasuries plus 20 bps; at par thereafter
|
|
|
| Notes due 2049
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| Amount: | $1.25 billion
|
| Maturity: | Sept. 13, 2029
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| Coupon: | 3.25%
|
| Price: | 99.601
|
| Yield: | 3.271%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call before March 13, 2049 at Treasuries plus 20 bps; at par thereafter
|
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