Simon Property prices tender offers for $2.75 billion of five note series

By Jennifer Chiou

New York, Sept. 10 – Simon Property Group, Inc. operating partnership subsidiary Simon Property Group, LP announced the pricing terms for the cash tender offers for five series of its senior notes.

For each $1,000 principal amount, the company is offering the following:

• $1,108.99 for its $500 million outstanding principal amount of 5.875% notes due 2017;

• $1,085.79 for its $650 million outstanding principal amount of 5.25% notes due 2016;

• $1,077.12 for its $400 million outstanding principal amount of 6.1% notes due 2016;

• $1,052.34 for its $600 million outstanding principal amount of 5.75% notes due 2015; and

• $1,036.13 for its $600 million outstanding principal amount of 5.1% notes due 2015.

The $2.75 billion of notes are listed in order of priority acceptance level.

Pricing was set at 2 p.m. ET on Sept. 10 using the bid-side yield to maturity based on the bid-side price of the U.S. Treasury reference security plus a fixed spread, as follows:

• For the 5.875% notes, the 0.5% Treasury notes due Aug. 31, 2016 plus 35 basis points;

• For the 5.25% notes, the 0.5% Treasury notes due Aug. 31, 2016 plus 30 bps;

• For the 6.1% notes, the 0.375% Treasury notes due Jan. 31, 2016 plus 25 bps;

• For the 5.75% notes, the 0.375% Treasury notes due Aug. 31, 2015 plus 25 bps; and

• For the 5.1% notes, the 0.375% Treasury notes due June 15, 2015 plus 25 bps.

As reported, the offers will end at 5 p.m. ET on Sept. 10, with settlement on Sept. 11.

The company also will pay accrued interest to but excluding the settlement date.

The offers are conditioned on the company obtaining enough financing to fund the offers. If the company fails to obtain funding for each series of notes, tendered notes will be accepted based on the priority acceptance level.

The purchase price for the 5.875% notes, the 5.25% notes, the 6.1% notes and the 5.75% notes was set taking into account the par call date for that series.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106 collect), Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955 collect) and RBS Securities Inc. (877 297-9832 or 203 897-6145 collect) are the dealer managers. Global Bondholder Services Corp. (866 807-2200 or 212 430-3774 collect) is the information agent and the tender agent.

Simon is an Indianapolis-based real estate investment trust for retail properties. It began the offer on Sept. 3.

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