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Tuesday, 10 August 2010

Simon Prices $900Mln of Notes at Record-Low Yield

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Simon Property Group has priced $900 million of unsecured notes at a price to yield only 160 basis points more than Treasurys, the lowest spread for a REIT notes issue in more than three years.

The Indianapolis REIT will use proceeds of the offering to buy bonds that are subject to a tender offer it launched this week.

The notes pay a coupon of 4.375 percent and mature on March 1, 2021. They were priced at 99.605 percent of par to yield 4.422 percent, or 160 bp over Treasurys.

S&P rates Simon's notes at A- and Moody's at A3.

The notes issue is the fourth for Simon this year. It raised $2.25 billion through three issues, including one with a 30-year maturity, in January. Those notes were priced to yield between 4.249 percent for a five-year issue and 6.794 percent for the 30-year notes. The coupon as well as the yield for Simon's latest deal is the lowest for a 10-year unsecured issue since at least 2006 and is due in large part to strong demand from fixed-income investors who have driven other corporate credit yields to even tighter levels.

The issue is underwritten by bookrunners Banc of America Securities, Credit Suisse Securities, Deutsche Bank Securities and JPMorgan Securities. Co-managers are BBVA Securities, Mitsubishi UFJ Securities, Nikko Bank, PNC Capital Markets, SunTrust Robinson Humphrey and U.S. Bancorp Investments.

Comments? E-mail Orest Mandzy or call him at (267) 247-0112, Ext. 211.

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Additional Info

  • Syndicate to Realpoint: No
  • Subject: REIT Unsecured Debt (UNSEC)
  • Deal Name: Bear Stearns Commercial Mortgage Securities Trust, 2006-PWR12
  • Company: Sonnenblick-Eichner Co.
Read 429 times Last modified on Tuesday, 10 August 2010

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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