The Macerich Company (NYSE: MAC) announced that its operating partnership, The Macerich Partnership, L.P., intends to offer $600 million in aggregate principal amount of exchangeable senior notes due 2031 in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

Macerich will fully and unconditionally guarantee the notes on a senior, unsecured basis. The initial purchasers will have a 13-day option to buy up to an additional $90 million in aggregate principal amount of notes.

The notes will mature on August 15, 2031, with interest payable semi-annually. Exchanges will be settled in cash up to the aggregate principal amount, with any remainder settled in cash, common stock, or a combination, at Macerich Partnership's election.

The notes will be redeemable for cash at Macerich Partnership's option on or after August 20, 2029, provided Macerich's common stock price exceeds 130% of the exchange price for a specified period. The interest rate, initial exchange rate, and other terms will be set at pricing.

In connection with the offering, Macerich Partnership plans to enter into capped call transactions intended to reduce potential dilution to common stockholders upon any exchange of notes.

Macerich Partnership said it intends to use a portion of the net proceeds to fund the capped call transactions, with the remainder used to refinance existing secured debt and for general corporate purposes.