New York, May 8 - iStar Financial Inc. priced $300 million of 4 7/8% senior notes due July 1, 2018 (existing ratings B3/B+) at par to yield 4 7/8% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The deal was in addition to the previously reported $265 million of senior notes due July 1, 2016 that priced at par to yield 3 7/8%.
iStar originally announced a single $250 million tranche of notes due 2016. It subsequently upsized the three-year notes and added the five-year note tranche.
BofA Merrill Lynch, Barclays and J.P. Morgan Securities LLC were the joint bookrunners for both portions.
Proceeds will be used to redeem the remaining $96.8 million 8 5/8% senior notes due 2013 and the remaining $448 million 5.95% senior notes due 2013.
The company is a New York City-based finance and investment company focused on the commercial real estate industry.
| Issuer: | iStar Financial Inc.
|
| Amount: | $300 million
|
| Maturity: | July 1, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 413 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until July 1, 2016, then at 102.438 starting July 1, 2016, 101.219 starting April 1, 2017, declining to par from Jan. 1, 2018
|
| Equity clawback: | For up to 35% at 104.875 until July 1, 2016
|
| Trade date: | May 7
|
| Settlement date: | May 10
|
| Existing ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
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