By Paul A. Harris
Portland, Ore., May 3 - iStar Financial Inc. priced an upsized $275 million issue of 9% senior notes (Caa1/B+/) at 98.012 to yield 9½% on Thursday, according to a syndicate source.
The yield printed at the tight end of yield talk, which was set in the 9 5/8% area. The reoffer price came in line with discount talk of about 2 points.
Bank of America Merrill Lynch was the left bookrunner for the quick-to-market deal, which was upsized from $250 million.
Barclays Capital Inc. and J.P. Morgan Securities LLC were the joint bookrunners.
The New York-based finance and investment company plans to use the proceeds to repay a portion of its floating-rate convertible notes due 2012.
| Issuer: | iStar Financial Inc.
|
| Face amount: | $275 million, increased from $250 million
|
| Proceeds: | $269,533,000
|
| Maturity: | June 1, 2017
|
| Securities: | Senior notes
|
| Left bookrunner: | Bank of America Merrill Lynch
|
| Joint bookrunners: | Barclays Capital Inc., J.P. Morgan Securities LLC
|
| Coupon: | 9%
|
| Price: | 98.012
|
| Yield: | 9½%
|
| Spread: | 869 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Trade date: | May 3
|
| Settlement date: | May 8
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 9 5/8% area yield, including about 2 points of OID
|
| Marketing: | Quick to market
|
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