Simon Property accepts $2.3B of notes in offer

January 22, 2010

Simon Property Group Inc. said Thursday that it will buy about $2.29 billion of notes tendered in response to an offer that expired Wednesday.

The Indianapolis-based real estate company, which operates regional malls and other retail property, anticipates a $166 million first-quarter charge related to the transaction.

Simon said its operating partnership, Simon Property Group LP, will fund the purchase with available cash plus proceeds from the sale of $2.25 billion in senior unsecured notes.

The sale is targeted to close on Monday.

The offering consists of $400 million of 4.2 percent notes due in 2015, $1.25 billion of 5.65 percent notes due in 2020 and $600 million of 6.75 percent notes due in 2040.

Simon said its liquidity will remain at about $7 billion after the transactions close.


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