By Paul A. Harris
Portland, Ore., Aug. 18 – iStar Inc. priced a $400 million issue of 5.5-year senior notes (existing ratings Ba3/BB/BB) at par to yield 5½% in a Tuesday drive-by, according to market sources.
The yield printed at the wide end of yield talk in the 5 3/8% area. Initial guidance was in the low-to-mid 5% area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC.
The New York-based services provider to the real estate industry plans to use the proceeds to redeem $400 million of its 5¼% senior notes due 2022.
| Issuer: | iStar Inc.
|
| Amount: | $400 million
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| Maturity: | Feb. 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC
|
| Co-managers: | Raymond James & Associates Inc., Citigroup Global Markets Inc. and Mizuho Securities USA Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 517 bps
|
| Call protection: | Two years
|
| Trade date: | Aug. 18
|
| Settlement date: | Sept. 1
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5 3/8% area
|
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