DOW JONES NEWSWIRES
Simon Property Group Inc. (SPG) increased its share offering by
43% to 20 million shares as the company sells its second batch of
stock in two months.
The nation's largest mall owner had said Wednesday that it would
offer 14 million shares and use the proceeds for general corporate
purposes.
Simon and other commercial-property owners have been selling
stock to raise funds to cut their debt. In March, the company
raised more than $500 million by selling shares.
Real-estate investment trusts often took on mountains of debt
during the boom years that is now starting to come due, and mall
landlords have been hurt as retailers have been pressured by
declining sales and credit woes.
Simon's shares priced at $50 each, a 9.7% discount to
Wednesday's closing price. The stock was recently down 4.1% at
$52.60 in premarket trading. The underwriters have the option to
buy 3 million more shares if the offering is oversubscribed.
The terms compared to the $31.50 each price the stock fetched in
March, just as the stock market was rebounding. Simon sold 17.3
million shares then.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com