Simon Property Group Announces Amended And Extended $3.5 Billion Revolving Credit Facility

Rhea-AI Summary

On October 26, 2021, Simon announced the amendment and extension of its $3.5 billion revolving credit facility, maturing initially on January 31, 2026, with an option to extend to January 31, 2027. The new facility, indexed to SOFR, reduces the interest rate for U.S. Dollar borrowings to SOFR plus 72.5 basis points. This refinancing enhances Simon's financial flexibility, increasing total revolving credit capacity to $7.5 billion. The facility was arranged by a diverse lender group led by major banks including JPMorgan Chase and BofA Securities.

Positive

• Refinanced credit facility enhances financial flexibility.
• Total revolving credit capacity increased to $7.5 billion.
• Interest rate on U.S. Dollar borrowings reduced to SOFR plus 72.5 basis points.

Negative

• None.

INDIANAPOLIS, Oct. 26, 2021 /PRNewswire/ -- Simon, a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations, announced today that it has amended and extended its $3.5 billion senior unsecured multi-currency revolving credit facility. The newly refinanced facility will initially mature on January 31, 2026 and can be extended for an additional year to January 31, 2027 at the Company's sole option. The facility provides for borrowings denominated in U.S. Dollars, Euro, Yen, Sterling, Canadian Dollars and Australian Dollars.

With this amendment, Simon is leading the corporate real estate loan market's transition away from LIBOR by indexing its revolving credit facilities to SOFR. Based upon the Company's current credit ratings, the interest rate on the new revolver for U.S. Dollar borrowings is SOFR plus 72.5 basis points (reduced from 82.5 basis points under the existing facility), plus a spread adjustment to account for the transition from LIBOR to SOFR. The terms of Simon's existing $4.0 billion revolving credit facility are expected to be conformed to the terms of the newly refinanced $3.5 billion facility.

"The newly refinanced credit facility enhances our already strong financial flexibility, and when combined with our existing $4.0 billion revolver, provides us with $7.5 billion of total revolving credit capacity. The closing of this market-leading facility is a continued endorsement and reaffirmation of the strength of our Company," said David Simon, Chairman, Chief Executive Officer and President.

The facilities are supported by a globally diverse lender group composed of 28 banks, led by JPMorgan Chase, BofA Securities, PNC Capital Markets, and Wells Fargo Securities who were Joint Lead Arrangers and Joint Bookrunners.

About Simon
Simon is a global leader 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

What is the amount of Simon's amended revolving credit facility?

Simon has amended its revolving credit facility to $3.5 billion.

When does Simon's new credit facility mature?

The new credit facility initially matures on January 31, 2026, with an option to extend to January 31, 2027.

What interest rate will Simon pay on its new credit facility?

Simon will pay SOFR plus 72.5 basis points on U.S. Dollar borrowings under the new facility.

How much total revolving credit capacity does Simon have now?

Simon has a total revolving credit capacity of $7.5 billion after this refinancing.

Which banks are involved in Simon's new credit facility?

The facility is supported by a diverse lender group led by JPMorgan Chase, BofA Securities, PNC Capital Markets, and Wells Fargo Securities.