iStar launches $675 million offering of five-year senior notes; price talk at high 4% area

By Cristal Cody

Tupelo, Miss., Sept. 11 – iStar Inc. (Ba3/BB-) intends to price $675 million of five-year senior notes in the high-yield primary market on Wednesday, according to an informed source and a 424B3 filing with the Securities and Exchange Commission.

Initial price talk was at the high 4% area.

BofA Securities, Inc., J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC are the bookrunners.

The notes will have a make-whole call prior to 2024. The issue has an equity clawback of up to 35% of the notes before 2021.

The deal includes a change-of-control put at 101%.

Proceeds will be used along with cash on hand to redeem the company’s $400 million outstanding of 4 5/8% senior notes due 2020 and $275 million outstanding of 6˝% senior notes due 2021.

iStar is a New York City-based real estate investment trust focused on the ground lease sector.

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