By Paul A. Harris
Portland, Ore., March 23 – iStar priced an upsized $275 million issue of five-year senior notes (B2/B+) at par to yield 6½% on Wednesday, according to market sources.
The issue size was increased from $250 million.
The yield printed at the tight end of the 6½% to 6¾% yield talk and inside of initial guidance in the 6¾% area, sources said.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays and Wells Fargo Securities LLC were the joint bookrunners.
The New York-based financial company plans to use the proceeds and cash on hand to repay in full its 3 7/8% senior notes due July of 2016.
iStar is focused on the commercial real estate industry.
| Issuer: | iStar
|
| Amount: | $275 million, increased from $250 million
|
| Maturity: | July 1, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Wells Fargo Securities LLC
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 514 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until July 1, 2018, then callable at 103.25
|
| Equity clawback: | 35% at 106.5 until July 1, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | March 23
|
| Settlement date: | March 29
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Quick to market
|
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