March 23, 2009 (FinancialWire) -- Simon Property Group, Inc. (NYSE: SPG) said that it has agreed to sell $650 million of senior notes of its majority-owned partnership subsidiary, Simon Property Group, L.P., in an underwritten public offering. Banc of America Securities (NYSE: BAC), Goldman, Sachs & Co. (NYSE: GS) and J.P. Morgan Securities (NYSE: JPM) will act as joint book-running managers.

The offering consists of $650 million of 10.35% notes due 2019. The notes were priced at 97.578% of the principal amount to yield 10.75% to maturity. The offering is scheduled to close on March 25.

Simon said it will use the net proceeds from this offering to reduce the outstanding balance on its unsecured credit facility and for general corporate purposes.

Indianapolis-based Simon Property Group is a U.S. real estate company that operates regional malls, premium outlet centers, the Mills, community/lifestyle centers and international properties.

The company owns or has an interest in 386 properties comprising 263 million square feet of gross leasable area in North America, Europe and Asia.

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