iStar Pricing $400 Million of Senior Unsecured Notes

Rhea-AI Summary

iStar (NYSE: STAR) announced on August 18, 2020, its agreement to sell $400 million of 5.50% Senior Unsecured Notes due 2026. The offering's closing is anticipated on September 1, 2020, pending customary conditions. Proceeds will be used to redeem outstanding $400 million of 5.25% Senior Unsecured Notes due 2022, covering premiums and fees. The notes will be issued under an effective SEC registration statement, with major banks acting as joint book-running managers.

Positive

• Agreement to sell $400 million in Senior Unsecured Notes due 2026.
• Planned use of proceeds to refinance existing debt, potentially reducing interest payments.

Negative

• Redemption of existing 5.25% Senior Unsecured Notes due 2022 may indicate cash flow pressures.

NEW YORK, Aug. 18, 2020 /PRNewswire/ -- iStar (NYSE: STAR) (the "Company") announced today that it has agreed to sell at par $400 million aggregate principal amount of its 5.50% Senior Unsecured Notes due 2026. The closing of the offering of the senior unsecured notes is expected to occur on September 1, 2020, subject to customary conditions.

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 prospectus supplement and accompanying prospectus for the offering. Electronic copies of the 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 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 iStar's recent financial move related to its 5.50% Senior Unsecured Notes?

iStar announced the sale of $400 million of 5.50% Senior Unsecured Notes due 2026 on August 18, 2020.

When is the closing date for iStar's Senior Unsecured Notes offering?

The closing date for iStar's offering is expected to be September 1, 2020.

How will iStar use the proceeds from the new Senior Unsecured Notes?

The proceeds will be used to redeem $400 million of 5.25% Senior Unsecured Notes due 2022 and to pay related premiums and fees.

Who are the joint book-running managers for iStar's notes offering?

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