Simon Property Group rolls out $2.25B offering

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Indianapolis-based shopping mall giant Simon Property Group Inc. announced Tuesday a $2.25 billion public offering of its
senior unsecured notes by its majority-owned partnership subsidiary.

The offering by Simon Property Group LP is
expected to close Jan. 25.

Proceeds from the offering will be used for general corporate purposes and to fund the
purchase of senior notes.

The offering consists of $400 million of 4.2 percent notes due 2015, $1.25 billion of
5.65 percent notes due 2020 and $600 million of 6.75 percent notes due 2040.

Citigroup Global Markets Inc., Morgan
Stanley & Co. Inc., RBS Securities Inc. and Barclays Capital Inc. will act as joint book-running managers. Calyon Securities
Inc., Fifth Third Securities Inc., Morgan Keegan & Company Inc., RBC Capital Markets Corp., Scotia Capital Inc. and SunTrust
Robinson Humphrey Inc. will act as co-managers.

Shares of Simon Property Group Inc. rose $1.77, or 2.4 percent,
on  Tuesday to close at $76.66 each.

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