Simon Extends $5.0B Credit Line to 2030 at Lower Rate

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Simon Property Group, L.P., the operating partnership subsidiary of real estate investment trust Simon, has amended, restated, and extended its $5.0 billion multi-currency unsecured revolving credit facility. The new terms include a lower interest rate and an extended maturity date to June 30, 2030, with an option to extend for an additional year.

Why it matters

This move by Simon, one of the largest mall operators in the U.S., demonstrates the company's financial strength and ability to secure favorable credit terms even in a challenging retail environment. The extended and lower-cost credit facility will provide Simon with greater financial flexibility to invest in its properties and pursue strategic initiatives.

The details

The amended $5.0 billion revolving credit facility has an initial maturity date of June 30, 2030, with an option to extend for an additional year. Based on Simon's current credit ratings, the interest rate for U.S. Dollar borrowings is 15 basis points lower than the previous facility, at SOFR plus 65.0 basis points. Simon also concurrently amended its existing $3.5 billion multi-currency unsecured revolving credit facility to align the pricing with the new $5.0 billion facility.

• The amended, restated, and extended $5.0 billion revolving credit facility will initially mature on June 30, 2030.
• Simon has the option to extend the $5.0 billion facility for an additional year to June 30, 2031.

What’s next

Simon will have the option to extend the $5.0 billion revolving credit facility for an additional year to June 30, 2031.