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Mall owner Simon Property Group to sell $1.2 billion in debt

November 10, 2011

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Commercial Real Estate, Real Estate & Retail, Real Estate Investment Trust, Simon Property Group

Shopping mall giant Simon Property Group Inc. on Thursday said that its majority-owned partnership subsidiary, Simon Property Group LP, plans to sell $1.2 billion of new debt to repay older debt.

The offering consists of $500 million of 2.8-percent notes due 2017 and $700 million of 4.125-percent notes due 2021. The offering is expected to close on Wednesday.

Indianapolis-based Simon Property plans to use the net proceeds from the offering to partially repay the outstanding U.S. dollar balance of its senior unsecured credit facility and for general business purposes.

Citigroup Global Markets, JPMorgan Securities, BofA Merrill Lynch, Deutsche Bank Securities, Goldman Sachs & Co. and Morgan Stanley are acting as joint book-running managers.

Mitsubishi UFJ Securities USA., RBC Capital Markets, SMBC Nikko Capital Markets, SunTrust Robinson Humphrey and U.S. Bancorp are acting as co-managers.

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Nothing like that

BillNovember 11, 2011 1:56 PM
Neva - this is nothing like robbing Peter to pay Paul. This is like refinancing your home. They are selling debt at an extremely low rate to pay off higher interest rate debt. They are also extending their repayment time frame of that debt, which gives them a better credit rating based on lowered risk.

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Isn't this like robbing Peter to pay Paul?

NevaNovember 11, 2011 11:09 AM
Seems so to me. You'd never get ahead.

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