iStar greenshoe lifts 4.5% convertible preferreds to $200 million

By Susanna Moon

Chicago, March 18 - iStar Financial Inc.'s underwriters exercised their $25 million over-allotment option, bringing the total size of the company's issue of perpetual convertible preferred stock to $200 million, according to an 8-K filing with the Securities and Exchange Commission.

As noted before, iStar priced an upsized $175 million of the perpetual convertible preferreds with a liquidation preference of $50 per share after the market close on March 12.

The convertibles priced to yield 4.5% with an initial conversion premium of 20%, in line with talk.

The registered, off-the-shelf offering of series J preferreds was announced at $150 million with a $22.5 million greenshoe.

Barclays, BofA Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners for the deal.

The preferreds are non-callable until March 15, 2018.

The securities are initially convertible into 3.9087 shares of common stock, which is equal to an initial conversion price of $12.79 per share.

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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