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Simon Property sets pricing in tender for 5.3%, 6.75%, 5.625% notes
By Jennifer Chiou
New York, Aug. 16 - Simon Property Group, Inc.'s operating partnership subsidiary, Simon Property Group, LP, announced the pricing of the tender offer for its $700 million of 5.3% senior notes due 2013, $1.1 billion of 6.75% senior notes due 2014 and $500 million of 5.625% senior notes due 2014.
For each $1,000 principal amount, the company will pay $1,107.95 for the 5.3% notes, $1,164.76 for the 6.75% notes and $1,136.60 for the 5.625% notes.
The purchase prices for the notes were determined using a fixed spread over the yield to maturity of a reference U.S. Treasury security calculated as of 2 p.m. ET on Aug. 16.
The fixed spread was 60 basis points for the 5.3% notes, 75 bps for the 6.75% notes and 65 bps for the 5.625% notes. The reference security was the 1% Treasury due July 15, 2013 for the 5.3% notes and the 1.75% Treasury due July 31, 2015 for the other notes.
Holders will also receive accrued interest up to but excluding the settlement date, slated for Aug. 17.
The tender offer was to expire at 5 p.m. ET on Aug. 16. It began on Aug. 9.
The offer is not subject to any minimum tender condition, but it is conditioned on the operating partnership's ability to complete its offering of a new series of senior notes on terms that it finds reasonably satisfactory. The proceeds, plus cash on hand, will be used to fund the tender offer.
The dealer managers are Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955), J.P. Morgan Securities Inc. (866 384-4666 or 212 834-3424), Banc of America Securities LLC and Credit Suisse Securities (USA) LLC. The information agent and depository is Global Bondholder Services Corp. (866 470-3900 or 212 430-3774).
Simon Property Group is an Indianapolis-based real estate company.
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