iStar Announces Receipt of Requisite Consents in Senior Notes Consent Solicitation

Rhea-AI Summary

iStar (NYSE: STAR) announced that it has secured necessary consents for amendments to the indentures of its 4.75% Senior Notes due 2024, 4.25% Senior Notes due 2025, and 5.50% Senior Notes due 2026. This follows a Consent Solicitation initiated on October 21, 2021, aimed at aligning the indentures with the anticipated sale of the Company’s net lease assets. Supplemental indentures have been executed, and consent fees are expected to be paid by November 1, 2021. iStar focuses on modern ground leases and is a major shareholder of Safehold (NYSE: SAFE).

Positive

• Received requisite consents for amendments to senior notes indentures.
• Executed supplemental indentures to facilitate proposed amendments.

Negative

• None.

NEW YORK, Oct. 29, 2021 /PRNewswire/ -- iStar (NYSE: STAR) announced today that it has received the requisite consents to implement proposed amendments to the indentures governing its (i) 4.75% Senior Notes due 2024 (the "2024 Notes"), (ii) 4.25% Senior Notes due 2025 (the "2025 Notes"), and (iii) 5.50% Senior Notes due 2026 (the "2026 Notes" and together with the 2024 Notes and the 2025 Notes, the "Notes") in connection with its previously announced solicitation of consents (the "Consent Solicitation") from holders of the applicable Notes. The Consent Solicitation was made pursuant to a Consent Solicitation Statement, dated October 21, 2021, (the "Consent Solicitation Statement"), to seek consents from holders of Notes to amend certain provisions of the indentures to align the indentures with the potential sale of the Company's net lease assets and the execution of its stated corporate strategy to grow its ground lease and ground lease-adjacent businesses and simplify its portfolio.

In connection with the receipt of the requisite consents, the Company has executed supplemental indentures to the indentures governing the Notes to effect the proposed amendments with respect to each series of Notes. The Company expects to pay the applicable consent fees to holders of Notes on November 1, 2021 or promptly thereafter.

J.P. Morgan Securities LLC acted as solicitation agent for the Consent Solicitations and D.F. King & Co., Inc. acted as the information agent and tabulation agent for the Consent Solicitation.

Neither the Consent Solicitation nor any related documents have been filed with the U.S. Securities and Exchange Commission, nor have any such documents been filed with or reviewed by any federal or state securities commission or regulatory authority of any country. No authority has been passed upon the accuracy or adequacy of the Consent Solicitation Statement or any related documents, and it is unlawful and may be a criminal offense to make any representation to the contrary.

Forward-Looking Statements

This press release contains forward-looking statements, including with respect to the Consent Solicitation and the potential sale of the Company's net lease assets. Actual results may differ materially from those reflected in the forward-looking statements. We undertake no obligation to release publicly the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.

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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 recent announcement did iStar make regarding its senior notes?

iStar announced it has received necessary consents to amend its senior notes indentures, including the 2024, 2025, and 2026 notes.

What are the implications of iStar's Consent Solicitation?

The Consent Solicitation aims to align the indentures with the potential sale of the Company's net lease assets and its corporate strategy.

When are the consent fees for iStar's senior notes expected to be paid?

The consent fees for the senior notes are expected to be paid on or after November 1, 2021.

How does iStar plan to utilize the funds from the potential sale of its assets?

iStar's strategy involves growing its ground lease and ground lease-adjacent businesses and simplifying its portfolio.

What is iStar's relationship with Safehold?

iStar is the founder and largest shareholder of Safehold, which specializes in modern ground leases.