Simon Property Group Sells $800 Million of Senior Notes

Simon (NYSE:SPG) said its majority-owned operating partnership will sell $800 million of 4.300% senior notes due 2031.

Rhea-AI Summary

Simon (NYSE:SPG) said its majority-owned operating partnership will sell $800 million of 4.300% senior notes due 2031. The new five-year notes carry a 4.300% coupon and the offering is expected to close on January 13, 2026, subject to customary closing conditions.

The operating partnership intends to use proceeds to repay $800 million of outstanding 3.300% notes due 2026. The public offering is managed by BofA Securities, Deutsche Bank Securities, Goldman Sachs and RBC Capital Markets under the partnership's shelf registration.

Positive

• Refinances $800M 3.300% notes due 2026
• Extends debt maturity to 2031 (five-year term)

Negative

• New coupon is 4.300%, 100 bps higher than prior 3.300% notes
• Closing subject to customary conditions; expected on Jan 13, 2026

Argus Jan 7 session

-1.26% close to close Open Argus

Details

News Market Reaction – SPG

In the Jan 7 session, SPG declined 1.26%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a refinancing in which SPG’s operating partnership agreed to issue $800 mi...

Analysis

This announcement details a refinancing in which SPG’s operating partnership agreed to issue $800 million of 4.300% senior notes due 2031 and use the proceeds to repay $800 million of 3.300% notes due 2026. This shifts the debt maturity profile without changing the principal amount. Recent news flow has focused on property growth and operational initiatives with modest stock reactions. Investors may monitor execution of the offering, closing on January 13, 2026, and future financing moves.

Key Figures

New notes amount: $800 million Coupon rate: 4.300% New notes term: 5 years +5 more

New notes amount

$800 million

Aggregate principal of 4.300% senior notes due 2031

Coupon rate

4.300%

Interest rate on new senior notes due 2031

New notes term

5 years

Term of new 4.300% senior notes

Existing notes repaid

$800 million

Outstanding principal of 3.300% notes due 2026 to be repaid

Existing coupon

3.300%

Coupon on notes due 2026 being repaid

Expected closing date

January 13, 2026

Target close for senior notes offering, subject to conditions

Share price

$186.30

Price before news, up 1.74% over prior 24 hours

52-week range

$136.34 – $190.135

Current price 36.64% above low and 2.02% below high

Historical Context

5 past events · Latest: Dec 03

5 events

1. Dec 03

   EV charging expansion

   24h Move

   +0.1%

   Expanded Hyper-Fast EV chargers across Simon locations with strong usage metrics.

2. Dec 03

   EV charging correction

   24h Move

   +0.1%

   Corrected details on EV charging rollout and energy delivered at Simon properties.

3. Dec 03

   Technology partnership

   24h Move

   +0.1%

   Autolane curbside operating system deployment at multiple Simon centers.

4. Nov 24

   Holiday programming

   24h Move

   -0.2%

   Launch of nationwide holiday events and Simon+ loyalty program across properties.

5. Nov 18

   Property acquisition

   24h Move

   +0.5%

   Acquisition of Phillips Place open-air retail center in Charlotte.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior notes, coupon rate, operating partnership, shelf registration statement, +1 more

5 terms

senior notes financial

"has agreed to sell $800 million aggregate principal amount of its 4.300% Notes due 2031. The new issue of senior notes"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

coupon rate financial

"The new issue of senior notes has a term of 5 years and a coupon rate of 4.300%."

The coupon rate is the annual interest percentage a bond or similar debt security promises to pay, calculated on its face value and usually delivered in regular payments like a steady paycheck. For investors it shows the expected income from holding the bond and helps compare returns across investments; it also affects a bond’s market price because higher or lower prevailing interest rates make that fixed payment more or less attractive.

operating partnership financial

"its majority-owned operating partnership subsidiary, Simon Property Group, L.P. (the "Operating Partnership"), has agreed"

An operating partnership is a separate legal entity set up to own and run a company’s core assets and day-to-day businesses, while investors hold interests indirectly through the parent company. Think of it like a dedicated garage that actually stores and services the cars while the owner keeps the dealership; it matters to investors because it affects how income, taxes, liability and voting rights are allocated and therefore can influence distributions and risk.

shelf registration statement regulatory

"public offering, which is being conducted under the Operating Partnership's shelf registration statement filed"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

prospectus supplement regulatory

"Any offer of securities will be made by means of the prospectus supplement and accompanying prospectus."

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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INDIANAPOLIS, Jan. 6, 2026 /PRNewswire/ -- Simon®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, announced today that its majority-owned operating partnership subsidiary, Simon Property Group, L.P. (the "Operating Partnership"), has agreed to sell $800 million aggregate principal amount of its 4.300% Notes due 2031.  

The new issue of senior notes has a term of 5 years and a coupon rate of 4.300%. The offering is expected to close on January 13, 2026, subject to the satisfaction of customary closing conditions. 

The Operating Partnership intends to use the proceeds of the offering to repay its $800 million outstanding principal amount of 3.300% notes due 2026.  

BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC  and RBC Capital Markets, LLC are serving as joint book-running managers of the public offering, which is being conducted under the Operating Partnership's shelf registration statement filed with the Securities and Exchange Commission. Any offer of securities will be made by means of the prospectus supplement and accompanying prospectus.

When available, copies of the prospectus supplement and accompanying prospectus can be obtained by contacting: BofA Securities, Inc., 201 North Tryon Street, NC1-022-02-25, Charlotte, North Carolina  28255-0001, Attn: Prospectus Department, telephone: 1-800-294-1322 or email: dg.prospectus_requests@bofa.com; Deutsche Bank Securities Inc., Attention: Prospectus Department, at 1 Columbus Circle, New York, New York 10019, by telephone at (800) 503-4611 or by email at Prospectus.Ops@db.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at 1-866-471-2526 or email at prospectus-ny@ny.email.gs.com; and RBC Capital Markets, LLC, ATTN: Syndicate Operations, Brookfield Place, 200 Vesey Street, 8th Floor, New York, New York 10281, toll-free number: 1-866-375-6829, email: rbcnyfixedincomeprospectus@rbccm.com. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. 

Forward-Looking Statements 

Certain statements made in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Simon Property Group, Inc. (the "Company") believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained, and it is possible that the Company's actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the intensely competitive market environment in the retail real estate industry, the retail industry, including e-commerce; the inability to renew leases and relet vacant space at existing properties on favorable terms;  the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; the potential loss of anchor stores or major tenants; an increase in vacant space at our properties; the loss of key management personnel; changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, the impact of tariffs and global trade disruptions on us to the extent impacting our tenants, recessionary pressures, wars, escalating geopolitical tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the potential for violence, civil unrest, criminal activity, or terrorist activities at our properties; the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; changes in market rates of interest; our international activities subjecting us to risks that are different from or greater than those associated with our domestic operations, including changes in foreign exchange rates; the impact of our substantial indebtedness on our future operations, including covenants in the governing agreements that impose restrictions on us that may affect our ability to operate freely; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; the inability to lease newly developed properties on favorable terms; risks relating to our joint venture properties, including guarantees of certain joint venture indebtedness; the effects of climate change; environmental liabilities; natural or other disasters; uncertainties regarding the impact of pandemics, epidemics or public health crises, and the associated governmental restrictions on our business, financial condition, results of operations, cash flow and liquidity; and general risks related to real estate investments, including the illiquidity of real estate investments. 

The Company discusses these and other risks and uncertainties under the heading "Risk Factors" in its annual and quarterly periodic reports filed with the SEC. The Company may update that discussion in subsequent other periodic reports, but except as required by law, the Company undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise. 

About Simon 

Simon® is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales.

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SOURCE Simon

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Simon (SPG) announce on January 6, 2026 about debt issuance?

Simon said its operating partnership will sell $800 million of 4.300% senior notes due 2031.

When is the SPG senior notes offering expected to close?

The offering is expected to close on January 13, 2026, subject to customary closing conditions.

What will Simon (SPG) do with proceeds from the $800M offering?

Proceeds are intended to repay $800 million of 3.300% notes that mature in 2026.

What is the coupon and maturity for SPG's new notes?

The new senior notes carry a 4.300% coupon and mature in 2031.

Who are the joint book-running managers for the SPG offering?

BofA Securities, Deutsche Bank Securities, Goldman Sachs and RBC Capital Markets are joint book-running managers.