iStar plans mid-week pricing for $1.32 billion notes in two tranches

By Paul A. Harris

Portland, Ore., June 9 – iStar Financial Inc. plans to price $1.32 billion of senior notes (expected ratings B3/B+) in two tranches on Wednesday, according to a syndicate source.

The public offer is comprised of 3½-year notes that become eligible for a par call three months prior to maturity but are otherwise non-callable.

The long maturity tranche features five-year senior notes, which become callable at par plus 50% of the coupon after two years.

Tranche sizes remain to be determined.

BofA Merrill Lynch, Barclays and J.P. Morgan Securities LLC are the joint bookrunners.

The notes in both tranches feature 101% poison puts.

Proceeds, along with cash on hand, will be used to repay and terminate the secured credit facility due 2017.

The prospective issuer is a New York-based finance company focused on the commercial real estate industry.

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