By Andrea Heisinger
Omaha, May 16 - iStar Financial Inc. priced an upsized $750 million of 8.625% five-year senior notes on Friday to yield Treasuries plus 564.8 basis points, according to an FWP filing with the Securities and Exchange Commission.
The issue was increased from $500 million, a market source said.
The notes (Baa2/BBB/BBB) priced at 99.495 to yield 8.75% with a make-whole redemption option of Treasuries plus 50 bps.
The notes feature a change-of-control put of 101% if the issue is rated below investment grade.
Price talk for the issue was for a coupon of 8.75% to 8.875%, a source said.
Bookrunners were Banc of America Securities LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.
Proceeds will be used to repay outstanding debt under an unsecured revolving credit facility.
The finance company for the commercial real estate industry is based in New York City.
| Issuer: | iStar Financial Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | June 1, 2013
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., J.P. Morgan Securities Inc.
|
| Coupon: | 8.625%
|
| Price: | 99.495
|
| Yield: | 8.75%
|
| Spread: | Treasuries plus 564.8 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | May 16
|
| Settlement date: | May 21
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 8.75% to 8.875% coupon
|
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