Simon Property Group Sells $3.5 Billion Of Senior Notes And Intends To Redeem $2.6 Billion Of Senior Notes
$1.0 billionprincipal amount of its 2.00% senior notes due September 13, 2024, $1.25 billionprincipal amount of its 2.45% senior notes due September 13, 2029, and $1.25 billion principal amount of its 3.25% senior notes due September 13, 2049.
Combined, the new issues of senior notes have a weighted average term of 15.9 years and a weighted average coupon rate of 2.61%. The offering is expected to close on
"I am very pleased with the market demand for this offering of senior notes. No real estate company has ever issued
- fund the early redemption in the fourth quarter, together with the applicable make-whole premium, of:
- 50% of its 2.375% notes due
October 2, 2020with an aggregate principal amount of €750 million (approximate USD equivalent of $852.8 million, as of June 30, 2019),
- 100% of its 4.375% notes due
March 1, 2021with an aggregate principal amount of $900 million,
- 100% of its 4.125% notes due
December 1, 2021with an aggregate principal amount of $700 million, and
- 100% of its 3.375% notes due
March 15, 2022with an aggregate principal amount of $600 million;
- repay a portion of the indebtedness outstanding under its global unsecured commercial paper note program; and
- use any remaining net proceeds for general business purposes.
In connection with the optional redemptions referenced above, a one-time charge of approximately
BofA Merrill Lynch,
When available, copies of the prospectus supplement and accompanying prospectus can be obtained by contacting:
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Certain statements made in this press release may be deemed "forward‑looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained, and it is possible that our actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: changes in economic and market conditions that may adversely affect the general retail environment; the potential loss of anchor stores or major tenants; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; decreases in market rental rates; the intensely competitive market environment in the retail industry; the inability to lease newly developed properties and renew leases and relet space at existing properties on favorable terms; risks related to international activities, including, without limitation, the impact, if any, of the
Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an
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Tom Ward, 317-685-7330, Investors; Ali Slocum 317-264-3079, Media