iStar Announces Adjustment of Conversion Rate for Convertible Notes

Rhea-AI Summary

iStar Inc. (NYSE: STAR) has announced an adjustment to the conversion rate of its 3.125% Convertible Senior Notes due 2022, effective May 31, 2021. The new conversion price stands at $14.04 per share, allowing for 71.2325 shares of common stock per $1,000 principal amount of notes. This adjustment is in response to cash dividends payable on June 15, 2021. The company, a pioneer in the ground lease sector through its subsidiary Safehold Inc. (NYSE: SAFE), is focused on maximizing value in commercial real estate markets, having completed over $40 billion in transactions.

Positive

• Adjustment of conversion price to $14.04 per share enhances shareholder value.
• Company has completed over $40 billion in transactions, indicating strong market position.

Negative

• None.

NEW YORK, June 1, 2021 /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, 2021.

The conversion price applicable to the outstanding Convertible Notes has been adjusted to $14.04 per share (71.2325 shares of iStar common stock per $1,000 principal amount of Notes) effective May 31, 2021 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 adjusted conversion price for iStar's Convertible Senior Notes due 2022?

The adjusted conversion price is $14.04 per share.

When will iStar pay cash dividends related to its Convertible Senior Notes?

Cash dividends will be paid on June 15, 2021.

What is the significance of the conversion rate adjustment for iStar's shareholders?

The adjustment potentially increases the value for shareholders holding the Convertible Senior Notes.

How much has iStar completed in transactions over the past 20 years?

iStar has completed over $40 billion in transactions.

What does iStar Inc. focus on within the commercial real estate market?

iStar focuses on providing modern ground leases to maximize value for real estate owners.