Simon Property Group (SPG) prices $3.5 billion bond offering.
Simon Property Group (SPG) announced today that it has priced a three-part bond offering with total gross proceeds of $3.5 billion. The offering is comprised of:
- $1.00 billion 2.00% senior notes due 2024
- $1.25 billion 2.45% senior notes due 2029
- $1.25 billion 3.25% senior notes due 2049
The combined issues were said to have a weighted average term of 15.9 years and a weighted average coupon of 2.61%. Proceeds from the offering will be used to reduce near-term maturities, including the redemption of higher-coupon bonds due 2020, 2021, and 2022. According to the company, the 30-year tranche is the largest single issuance of long-dated bonds in the REIT sector and priced with the lowest coupon.
SPG's operating partnership is rated A2/A by Moody's and S&P.