Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The retail real estate investment trust (REIT), Simon Property Group Inc. (SPG - Analyst Report), disclosed the decision of its majority-owned operating partnership subsidiary – Simon Property Group, L.P. – to make a public offering of €750 million ($1.01 billion) principal amount of 2.375% senior unsecured notes due 2020. The offering of the notes is anticipated to close on Oct 2, 2013.

In particular, Simon Property Group, L.P. plans to utilize the generated proceeds mainly for paying off euro denominated debts under the unsecured revolving credit facility. The remaining proceeds are expected to be used for other corporate purposes.

A consortium of leading financial institutions such as J.P. Morgan Securities plc of JPMorgan Chase & Co. (JPM - Analyst Report), The Royal Bank of Scotland plc, Goldman Sachs International of The Goldman Sachs Group, Inc. (GS - Analyst Report), Mitsubishi UFJ Securities International plc and Barclays Bank PLC of Barclays PLC (BCS - Snapshot Report) acted as the joint book-running managers for the public offering.

The aforementioned transaction is strategic fit as it will lower debt and consequently the interest expenses. Moreover, increased financial flexibility will enable Simon Property to pursue its portfolio restructuring activity that will go a long way in enhancing its top-line growth. Notably, as of Jun 30, 2013, Simon Property’s cash and cash equivalents amounted to $1.10 billion.

As a matter of fact, Simon Property has been actively capitalizing on growth opportunities in fast-growing markets worldwide. Earlier this month, the company began developing the Charlotte Premium Outlets in North Carolina. Moreover, last month Simon Property opened its third Premium Outlet Center – Busan Premium Outlets – in South Korea and its first Premium Outlet Center – St. Louis Premium Outlets – in Chesterfield. We believe that such activities will help boost Simon Property’s top line and strengthen the company’s upscale portfolio base.

Simon Property currently carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%