iStar Financial to sell $150 million perpetual convertible preferreds to yield 4.5%, up 20%

By Rebecca Melvin

New York, March 12 - iStar Financial Inc. plans to price $150 million of perpetual convertible preferred stock with a liquidation preference of $50 per share after the market close Tuesday that were talked to yield 4.5% with an initial conversion premium of 20%, according to a syndicate source.

The registered, off-the shelf offering of series J preferreds also has a $22.5 million greenshoe. Barclays, BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners for the deal.

The preferreds are non-callable until March 15, 2018. iStar doesn't intend to list the preferreds.

The New York-based commercial real estate lender plans to use the proceeds for new investment activities and for general corporate purposes.

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