NorthStar to price $300 million 1.5-year stock-settlable notes

By Rebecca Melvin

New York, June 24 – Northstar Realty Finance Corp.’s NorthStar Realty Europe Corp. launched a private offering of $300 million of senior stock-settlable notes due December 2016, according to a news release.

The Rule 144A deal has a $60 million greenshoe.

Timing and pricing talk were not immediately available.

The notes will be senior unsubordinated and unsecured obligations of NorthStar Realty Europe.

NorthStar Realty Finance and NorthStar Realty Finance Ltd. Partnership will guarantee payments on the notes.

Subject to conditions, including a planned spin-off of NorthStar Realty Europe by NorthStar Realty Finance and listing of NorthStar Realty Europe common stock, NorthStar Realty Europe may elect to settle all or part of the value of the notes in NorthStar Realty Europe common stock in lieu of cash, in which case the number of shares delivered per note will be based on NorthStar Realty Europe common stock prices during a period of time immediately preceding the maturity date.

Proceeds will be used for general corporate purposes, which may include, funding acquisitions, including additional European commercial real estate and other assets and repayment of NorthStar Realty Finance debt, including amounts outstanding under its corporate revolving credit facility that accrues interest at a per annum rate of Libor plus 350 basis points and is due on Aug. 5, 2017.

New York-based NorthStar is a commercial real estate company, organized as a real estate investment trust.

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