Loan & DebtAug 11, 2026, 04:58 PM
Macerich Partnership Issues $775M 2.25% Exchangeable Senior Notes
AI Summary
Macerich Partnership, L.P., the operating partnership of The Macerich Company, completed the issuance and sale of $775 million aggregate principal amount of 2.25% Exchangeable Senior Notes due 2031. This amount includes the full exercise of the initial purchasers' option to purchase an additional $100 million in notes. The notes are fully guaranteed by The Macerich Company, and the net proceeds, estimated at $757.0 million, will be used to refinance existing secured debt and for general corporate purposes. The company also entered into capped call transactions to mitigate potential stock dilution.
Key Highlights
- Macerich Partnership issued $775 million aggregate principal amount of 2.25% Exchangeable Senior Notes due 2031.
- The issuance included the full exercise of the initial purchasers' option for an additional $100 million in notes.
- Notes mature on August 15, 2031, with interest payable semi-annually.
- Initial exchange rate is 35.4761 shares per $1,000 principal amount, at an initial exchange price of $28.19 per share.
- The exchange price represents a 20% premium over the last reported sale price of $23.49.
- Net proceeds are estimated at $757.0 million, including the option exercise.
- Proceeds will be used to refinance existing secured debt and for general corporate purposes.
- Capped call transactions were entered into to reduce potential stock dilution upon exchange.
Price Impact
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