Boston, MA 09/11/2014 (wallstreetpr) – Simon Property Group Inc (NYSE:SPG) announced the completion of its previously announced offering of senior unsecured notes. The company intends to use the proceeds from the offering to redeem notes due 2016. Simon Property Group also revealed a potential negative impact to its bottom line and funds from operations (FFO) in 3Q.
$250 million Notes redemption
The company said that the underwritten notes offering comprised $900 million worth of notes due 2024 and bear 3.375% in coupon rate. There was also $400 million worth of notes due 2044 with 4.250% interest rate. Combined, the company said the notes had an average interest rate of 3.64% and average duration of 16.1 years. The funds from the offering will help towards redeeming the outstanding notes worth 250 million and are due 2016. The outstanding notes bear coupon rate of 7.875%. The redemption of the notes is scheduled for September 30, 2014.
The notes to be redeemed on September 30, were issued by one of the subsidiaries of Simon Property Group Inc(NYSE:SPG).
The latest debt offering was back by Deutsche Bank Securities, RBS Securities and Citigroup Global Market as joint book-running managers.
$128 million impact on the bottom line
Meanwhile, Simon Property Group Inc(NYSE:SPG) announced that it expects a negative impact of $128 million to its bottom line in 3Q. The impact will be in the form of a charge that relates to its recent debt financing efforts. It said that the impact will be $0.35 a share and will be felt on its bottom line and FFO.
Simon Property Group Inc(NYSE:SPG) has lately turned its focus on bigger malls and outlets and that explains why it spun off its smaller malls and strip centers into a standalone company known as Washington Prime Group. It spun off the smaller malls and strip centers in May this year.
Simon Property Group Inc(NYSE:SPG) is a self-managed real estate investment trust that boasts more than $52.6 billion in market cap.
