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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.