iStar Launches Offering of $400 Million of Senior Unsecured Notes

Rhea-AI Summary

iStar (NYSE: STAR) announced the launch of a $400 million offering of Senior Unsecured Notes due 2026, subject to market conditions. The proceeds will be used to redeem the same amount of its 5.25% Senior Unsecured Notes due 2022, along with related costs. The offering is managed by major investment banks, including BofA Securities and J.P. Morgan. This press release serves as a preliminary notice and does not constitute a formal offer or solicitation.

Positive

• Launch of $400 million Senior Unsecured Notes due 2026.
• Proceeds aimed at redeeming existing high-interest debt.

Negative

• Redemption of 5.25% Senior Unsecured Notes indicates refinancing due to high-interest obligations.

NEW YORK, Aug. 18, 2020 /PRNewswire/ -- iStar (NYSE: STAR) (the "Company") announced today that it has launched an offering, subject to market and other conditions, of $400 million aggregate principal amount of its Senior Unsecured Notes due 2026. The Company intends to use the net proceeds of the offering, together with cash on hand, to redeem the $400 million aggregate principal amount outstanding of its 5.25% Senior Unsecured Notes due 2022 and to pay related premiums, fees and expenses.

BofA Securities, J.P. Morgan, Barclays, Morgan Stanley, and Goldman Sachs & Co. LLC are the joint book-running managers for the offering. The notes will be issued pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the "SEC").

This press release does not constitute an offer to sell or the solicitation of an offer to buy the offered notes, nor shall there be any sale of the notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

The redemption of the Company's 5.25% Senior Unsecured Notes due 2022 will be made solely pursuant to a redemption notice delivered pursuant to the applicable indenture, and nothing contained in this press release constitutes a notice of redemption of the Company's 5.25% Senior Unsecured Notes due 2022.

The notes will be offered by means of the preliminary prospectus supplement and accompanying prospectus for the offering. Electronic copies of the preliminary prospectus supplement and accompanying prospectus for the offering may be obtained for free by searching the SEC online database (EDGAR) on the SEC website at www.sec.gov.  Alternatively, copies of the preliminary prospectus supplement and accompanying prospectus for the offering may be obtained by contacting the joint book-running managers at the following addresses or telephone numbers:

BofA Securities NC1-004-03-43 200 North College Street, 3rd Fl. Charlotte, NC 28255-0001 Attn: Prospectus Department dg.prospectus_requests@bofa.com	J.P. Morgan Securities LLC c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 1-866-803-9204
Barclays Capital Inc. c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 barclaysprospectus@broadridge.com 1-888-603-5847 (toll-free)	Morgan Stanley & Co. LLC 180 Varick Street, 2nd Floor New York, NY 10014 Attn: Prospectus Department prospectus@morganstanley.com 1-866-718-1649
Goldman Sachs & Co. LLC 200 West Street New York, NY 10282 Attn: Prospectus Department Prospectus-NY@ny.email.gs.com 1-212-902-1171

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SOURCE iStar Inc.

FAQ

What is the purpose of iStar's $400 million offering of Senior Unsecured Notes?

The offering aims to redeem existing 5.25% Senior Unsecured Notes due 2022.

Who is managing iStar's Senior Unsecured Notes offering?

BofA Securities, J.P. Morgan, Barclays, Morgan Stanley, and Goldman Sachs are the joint book-running managers.

When are iStar's Senior Unsecured Notes due?

The new notes are due in 2026, while the existing notes set for redemption are due in 2022.

What will iStar do with the proceeds from the offering?

The proceeds will be used to redeem the existing $400 million of Senior Unsecured Notes and cover related expenses.