INDIANAPOLIS, Jan. 11, 2021 /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:
- $800 million principal amount of
its 1.750% senior notes due 2028, and
- $700 million principal amount of
its 2.200% senior notes due 2031.
Combined, the two new issues of senior notes have a weighted
average term of 8.4 years and a weighted average coupon rate
of 1.96%. The offering is expected to close on January 21, 2021, subject to customary closing
conditions.
The Operating Partnership intends to use the net proceeds of the
offering:
- to fund the planned optional redemption of its $550 million aggregate principal amount of 2.500%
notes due July 2021 (plus the
make-whole amount); and
- for general corporate purposes, including to repay unsecured
indebtedness, including indebtedness outstanding under its senior
unsecured revolving credit facility, its senior unsecured
delayed-draw term loan facility and/or its global unsecured
commercial paper note program.
Barclays, Deutsche Bank Securities, 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: Barclays
Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717, by
calling 1-888-603-5847 or by
emailing barclaysprospectus@broadridge.com; Deutsche Bank
Securities Inc., Attention: Prospectus Group, 60 Wall Street,
New York, NY 10005-2836,
Telephone: (800) 503-4611, Email: prospectus.cpdg@db.com; SMBC
Nikko Securities America, Inc., 277 Park Avenue, New York, NY 10172, Email:
prospectus@smbcnikko-si.com, Telephone: 1-888-868-6865, Attention:
Debt Capital Markets; Wells Fargo Securities, LLC, 608 2nd Avenue
South, Suite 1000, Minneapolis, MN
55402, Attention: WFS Customer Service, by telephone at
1-800-645-3751 or by email at
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 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: uncertainties regarding the impact
of the COVID-19 pandemic and governmental restrictions intended to
prevent its spread (which are impacting some properties more than
others, given differing consumer demographics and responses to the
pandemic and the characteristics and layout of certain properties)
on our tenants' businesses, financial condition, results of
operations, cash flow and liquidity and our ability to access the
capital markets, satisfy our debt service obligations and make
distributions to our stockholders; the inability to collect rent
due to the bankruptcy or insolvency of tenants or otherwise;
changes in economic and market conditions that may adversely affect
the general retail environment; the intensely competitive market
environment in the retail industry; changes to applicable laws or
regulations or the interpretation thereof; risks associated with
the acquisition, development, redevelopment, expansion, leasing and
management of properties; the inability to lease newly developed
properties and renew leases and relet space at existing properties
on favorable terms; the potential loss of anchor stores or major
tenants; decreases in market rental rates; the impact of our
substantial indebtedness on our future operations; any disruption
in the financial markets that may adversely affect our ability to
access capital for growth and satisfy our ongoing debt service
requirements; any change in our credit rating; changes in market
rates of interest and foreign exchange rates for foreign
currencies; general risks related to real estate investments,
including the illiquidity of real estate investments; security
breaches that could compromise our information technology or
infrastructure; risks relating to our joint venture properties; our
continued ability to maintain our status as a REIT; changes in tax
laws or regulations that result in adverse tax consequences;
changes in the value of our investments in foreign entities; our
ability to hedge interest rate and currency risk; changes in
insurance costs; the availability of comprehensive insurance
coverage; risks related to international activities; natural
disasters; the potential for terrorist activities; environmental
liabilities; the loss of key management personnel; and the
transition of LIBOR to an alternative reference rate. 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.
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SOURCE Simon