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. The 2.00% notes were priced at 99.901% to yield 2.021% (+70 bp).
- $1.25 billion 2.45% senior notes due 2029. The 2.45% notes were priced at 98.930% to yield 2.572% (+110 bp).
- $1.25 billion 3.25% senior notes due 2049. The 3.25% notes were priced at 99.601% to yield 3.271% (+130 bp).
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.