Simon Property Group announces completion of $500 mln sale of senior unsecured notes

Simon Property Group, Inc. announced today that its partnership subsidiary, Simon Property Group, L.P., has completed the sale of $500 million of debt securities. The issue included the following tranches of senior unsecured notes: $150 million of 5.375% Notes due 2008 $350 million of 6.350% Notes due 2012.

All securities in this offering are rated Baa1 by MoodyÂ's Investors Service and BBB by Standard & PoorÂ's. Net proceeds from the offering of $495 million will be used to repay the $100 million outstanding balance of the unsecured acquisition facility that was used to finance a portion of SPGÂ's acquisition of assets from Rodamco North America N.V. and to reduce the outstanding balance of the CompanyÂ's unsecured corporate credit facility. The transaction was priced on August 15, 2002.

'We are pleased that we were able to successfully access the unsecured debt markets at favorable all-in borrowing costs,' said David Simon, Chief Executive Officer. 'Prior to this offering we also entered into a 10-year rate lock transaction at 4.03%, reducing our total weighted average effective borrowing cost for the offering to 5.89%. We continue to believe in the value of the unsecured debt market and its importance in our strategy to maintain a strong balance sheet.'

The transaction was placed by Banc of America Securities LLC and Merrill Lynch & Co. as joint book-running managers; and Credit Suisse First Boston, Deutsche Bank Securities, UBS Warburg, Commerzbank Securities and Dresdner Kleinwort Wasserstein as co-managers. The notes were sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

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(source: Simon Property)

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