I believe the last stock and bond offering and the current stock offering is to raise funds to partner to buy General Growth Properties (GGWPQ.PK). Look at the news the last couple of days on both companies.
General Growth has changed its DIP financing to use a group of bondholders consisting of Canpartners Investments, Delaware Street Capital Master Fund, Farallon Capital Management, Luxor Capital Group, Perry Principals Investments LLC and Whitebox Advisors instead of Ackman's Pershing Capital. Ackman controls over 25 percent of the shares in GGWPQ. Simon's partner properties with GGP are not included in the bankruptcy filings.
Read between the lines. Simon is interested in either buying or parnering with other investment groups to buy GGWPQ, IMO.
But I doubt Ackman and the long-term sharehoulders of General Growth will let the company with the "best malls in America" be bought out without a significant premium from where it is currently trading.
Some say with GGWPQ is worth over $16 should the market for debt refinancing improve a little. Seems to me the debt market is starting to improve.
They will not get the assets at a discount to market. Which means, if they do buy GGP assets, they will just be increasing their leverage to purchase depreciating assets in a CRE market that has a long way to go before it hits bottom.