INDIANAPOLIS, Nov. 6, 2023
/PRNewswire/ -- Simon®, a real estate investment trust
engaged in the ownership of premier shopping, dining, entertainment
and mixed-use destinations, announced today that its majority-owned
operating partnership subsidiary, Simon Property Group, L.P. (the
"Operating Partnership"), has agreed to sell:
- $500 million aggregate principal
amount of its 6.250% Notes due 2034, and
- $500 million aggregate principal
amount of its 6.650% Notes due 2054.
Combined, the two new issues of senior notes have a weighted
average term of 20.2 years and a weighted average coupon rate of
6.450%. The offering is expected to close on November 9, 2023, subject to customary closing
conditions.
The Operating Partnership intends to use the net proceeds of the
offering, together with cash on hand, to repay all or a portion of
its 3.750% notes due February 2024,
at or prior to their maturity on February 1,
2024, its 2.00% notes due September
2024, at or prior to their maturity on September 13, 2024, and its 3.375% notes due
October 2024, at or prior to their
maturity on October 1, 2024, and to
use any remaining net proceeds for general corporate purposes,
including to repay other unsecured indebtedness.
BofA Securities, SOCIETE GENERALE, SMBC Nikko and Wells Fargo
Securities are serving as joint book-running managers of the public
offering, which is being conducted under the Operating
Partnership's shelf registration statement filed with the
Securities and Exchange Commission. Any offer of securities will be
made by means of the prospectus supplement and accompanying
prospectus.
When available, copies of the prospectus supplement and
accompanying prospectus can be obtained by contacting: BofA
Securities, Inc., 201 North Tryon Street, NC1-022-02-25, Charlotte,
North Carolina 28255-0001, Attn: Prospectus Department,
telephone: 1-800-294-1322 or email:
dg.prospectus_requests@bofa.com; SG Americas Securities, LLC, 245
Park Avenue, New York, New York
10167, Attention: High Grade Syndicate Desk, Email:
us-glfi-syn-cap@sgcib.com; SMBC Nikko Securities America, Inc., 277
Park Avenue, New York, New York
10172, Attention: Debt Capital Markets, Email:
prospectus@smbcnikko-si.com; and Wells Fargo Securities, LLC, 608
2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS
Customer Service, telephone: 1-800-645-3751 or email:
wfscustomerservice@wellsfargo.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
these securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
other jurisdiction.
Forward-Looking Statements
Certain statements made in this press release may be deemed
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Although Simon Property
Group, Inc. (the "Company") believes the expectations reflected in
any forward-looking statements are based on reasonable assumptions,
the Company can give no assurance that its expectations will be
attained, and it is possible that the Company's actual results may
differ materially from those indicated by these forward-looking
statements due to a variety of risks, uncertainties and other
factors. Such factors include, but are not limited to: changes in
economic and market conditions that may adversely affect the
general retail environment, including but not limited to those
caused by inflation, recessionary pressures, wars, escalating
geopolitical tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the
inability to renew leases and relet vacant space at existing
properties on favorable terms; the potential loss of anchor stores
or major tenants; the inability to collect rent due to the
bankruptcy or insolvency of tenants or otherwise; an increase in
vacant space at its properties; the potential for violence, civil
unrest, criminal activity or terrorist activities at its
properties; natural disasters; the availability of comprehensive
insurance coverage; the intensely competitive market environment in
the retail industry, including e-commerce; security breaches that
could compromise its information technology or infrastructure; the
increased focus on ESG metrics and reporting; environmental
liabilities; its international activities subjecting it to risks
that are different from or greater than those associated with its
domestic operations, including changes in foreign exchange rates;
its continued ability to maintain its status as a REIT; changes in
tax laws or regulations that result in adverse tax consequences;
risks associated with the acquisition, development, redevelopment,
expansion, leasing and management of properties; the inability to
lease newly developed properties on favorable terms; the loss of
key management personnel; uncertainties regarding the impact of
pandemics, epidemics or public health crises, and the associated
governmental restrictions on its business, financial condition,
results of operations, cash flow and liquidity; changes in market
rates of interest; the impact of its substantial indebtedness on
its future operations, including covenants in the governing
agreements that impose restrictions on it that may affect its
ability to operate freely; any disruption in the financial markets
that may adversely affect its ability to access capital for growth
and satisfy its ongoing debt service requirements; any change in
its credit rating; risks relating to its joint venture properties,
including guarantees of certain joint venture indebtedness; and
general risks related to real estate investments, including the
illiquidity of real estate investments.
The Company discusses these and other risks and uncertainties
under the heading "Risk Factors" in its annual and quarterly
periodic reports filed with the SEC. The Company may update that
discussion in subsequent other periodic reports, but except as
required by law, the Company undertakes no duty or obligation to
update or revise these forward-looking statements, whether as a
result of new information, future developments, or otherwise.
About Simon
Simon® is a real estate
investment trust engaged in the ownership of premier shopping,
dining, entertainment and mixed-use destinations and an S&P 100
company (Simon Property Group, NYSE: SPG). Our properties across
North America, Europe and Asia provide community gathering places for
millions of people every day and generate billions in annual
sales.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/simon-property-group-sells-1-billion-of-senior-notes-301979228.html
SOURCE Simon