The Macerich Company (NYSE: MAC) announced that its operating partnership, The Macerich Partnership, L.P., has priced an offering of $675 million in aggregate principal amount of 2.25% exchangeable senior notes due 2031, according to a press release. The offering was upsized from an initially announced $600 million.

The notes, offered privately to qualified institutional buyers under Rule 144A, are scheduled to settle on Aug. 11, 2026, subject to customary closing conditions. Macerich will fully and unconditionally guarantee the notes on a senior, unsecured basis. The initial purchasers were also granted a 13-day option to purchase up to an additional $100 million in notes.

Interest will accrue at 2.25% per annum, payable semi-annually on Feb. 15 and Aug. 15 each year, beginning Feb. 15, 2027. The notes mature on Aug. 15, 2031. The initial exchange rate is set at 35.4761 shares of Macerich common stock per $1,000 principal amount, representing an exchange price of approximately $28.19 per share — a 20% premium over the Aug. 6, 2026 closing price of $23.49 per share.

The notes are redeemable for cash at Macerich Partnership's option on or after Aug. 20, 2029, subject to certain conditions, including the common stock price exceeding 130% of the exchange price for a specified period.

Net proceeds from the offering are estimated at approximately $659.1 million, or approximately $757.0 million if the overallotment option is exercised in full. Macerich Partnership plans to use approximately $39.2 million of the proceeds to fund capped call transactions entered into with certain financial institutions, with the remainder allocated to refinancing existing secured debt and general corporate purposes.

The capped call transactions carry an initial cap price of approximately $34.06 per share, representing a 45% premium over the Aug. 6, 2026 closing price. The transactions are intended to reduce potential dilution to common stockholders upon any exchange of the notes.