iStar Announces Adjustment of Conversion Rate for Convertible Notes

Rhea-AI Summary

iStar Inc. (NYSE: STAR) revised the conversion rate for its 3.125% Convertible Senior Notes due 2022, following the announcement of cash dividends on June 15, 2022. The new conversion price is $13.73 per share, effective May 31, 2022, allowing 72.8554 shares of common stock per $1,000 principal amount. This adjustment will be communicated to note holders and the trustee. iStar focuses on modernizing ground leases and holds a significant stake in Safehold Inc. (NYSE: SAFE), aiming to innovate within the $7 trillion commercial real estate market.

Positive

• Adjustment of conversion price to $13.73 per share may enhance attractiveness of Convertible Senior Notes.
• iStar's focus on modern ground leases positions it favorably in a $7 trillion market.

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• None.

NEW YORK, June 1, 2022 /PRNewswire/ -- iStar Inc. (NYSE: STAR) announced today an adjustment to the conversion rate of its 3.125% Convertible Senior Notes due 2022 as a result of the common stock cash dividends to be paid on June 15, 2022.

The conversion price applicable to the outstanding Convertible Notes has been adjusted to $13.73 per share (72.8554 shares of iStar common stock per $1,000 principal amount of Notes) effective May 31, 2022 and subject to further adjustment as provided in the governing supplemental indenture. 

Notice of the conversion rate adjustment has been delivered to holders of the notes and U.S. Bank National Association, as trustee, in accordance with the terms of the supplemental indenture.

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iStar Inc. (NYSE: STAR) is focused on reinventing the ground lease sector, unlocking value for real estate owners throughout the country by providing modern, more efficient ground leases on institutional quality properties. As the founder, investment manager and largest shareholder of Safehold Inc. (NYSE: SAFE), the creator of the modern ground lease industry, iStar is using its national investment platform and its historic strengths in finance and net lease to expand the use of modern ground leases within the $7 trillion institutional commercial real estate market. Recognized as a consistent innovator in the real estate markets, iStar specializes in identifying and scaling newly discovered opportunities and has completed more than $40 billion of transactions over the past two decades. Additional information on iStar is available on its website at www.istar.com.

 

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SOURCE iStar Inc.

FAQ

What is the new conversion rate for iStar's Convertible Senior Notes?

The conversion price for iStar's 3.125% Convertible Senior Notes is now $13.73 per share.

When does the adjustment to iStar's Convertible Senior Notes take effect?

The adjustment took effect on May 31, 2022.

What dividends are related to iStar's 3.125% Convertible Senior Notes?

The adjustment was made in relation to cash dividends payable on June 15, 2022.

How does iStar Inc. relate to Safehold Inc.?

iStar is the founder and largest shareholder of Safehold Inc. (NYSE: SAFE), focusing on modern ground leases.

What market is iStar Inc. targeting with its business model?

iStar is targeting the $7 trillion institutional commercial real estate market.