Simon Property Group Announces the Sale of $750 Million of Senior Unsecured Notes
INDIANAPOLIS, Oct 26, 2001 /PRNewswire via COMTEX/ -- Simon Property Group,
Inc. (NYSE: SPG) (the "Company") announced today that its partnership
subsidiary, Simon Property Group, L.P., has completed the sale of $750 million
of 6.375% senior unsecured notes due November 15, 2007.
All securities in this offering are rated Baa1 by Moody's Investors Service and
BBB by Standard & Poor's. Net proceeds from the offering will be initially used
to reduce the outstanding balance of the Company's $1.25 billion unsecured
credit facility. Ultimately, the Company plans to also retire mortgage
indebtedness on six wholly owned properties and to retire $250 million of 9%
bonds that mature in early 2002. The transaction was priced on October 23, 2001.
"We are pleased that we were able to successfully access the unsecured debt
markets and obtain favorable rates on $750 million of debt," said David Simon,
chief executive officer. "This offering, which was increased from its original
size of $500 million due to strong investor demand, demonstrates the
attractiveness of the Simon name in the unsecured market. As an organization, we
place a high value on our ability to access this market."
The transaction was underwritten by Banc of America Securities LLC and Salomon
Smith Barney as joint lead managers, and Credit Suisse First Boston, J.P.
Morgan, and UBS Warburg as co-managers.
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a
self-administered and self-managed real estate investment trust which, through
its subsidiary partnerships, is engaged in the ownership, development,
management, leasing, acquisition and expansion of income-producing properties,
primarily regional malls and community shopping centers. It currently owns or
has an interest in 251 properties containing an aggregate of 186 million square
feet of gross leasable area in 36 states and six assets in Europe and Canada.
Together with its affiliated management company, Simon owns or manages
approximately 191 million square feet of gross leasable area in retail and
mixed-use properties. Shares of Simon Property Group, Inc. are paired with
beneficial interests in shares of stock of SPG Realty Consultants, Inc.
Additional Simon Property Group information is available at www.shopsimon.com .
SOURCE Simon Property Group, Inc.
CONTACT: Investors, Shelly Doran, +1-317-685-7330, or Media, Billie
Scott, +1-317-263-7148, both of Simon Property Group, Inc.
Copyright (C) 2001 PR Newswire. All rights reserved.