Simon Property accepts $2.3B of notes in offer

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.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our updated comment policy that will govern how comments are moderated.

{{ articles_remaining }}
Free {{ article_text }} Remaining
{{ articles_remaining }}
Free {{ article_text }} Remaining Article limit resets on
{{ count_down }}