NEW YORK, Oct. 10 /PRNewswire-FirstCall/ -- iStar Financial Inc.
(NYSE: SFI), a leading publicly traded finance company focused on the
commercial real estate industry, announced today the pricing of $800 million
aggregate principle amount of its convertible senior floating rate notes due
2012. These Notes priced at par, mature on October 1, 2012, and will bear
interest at a rate per annum equal to 3-month LIBOR plus 0.50%. The offering
is expected to close on October 15, 2007.
The Notes will be senior unsecured obligations of iStar Financial and will
rank equally with all of the Company's other senior unsecured indebtedness. On
or after August 15, 2012, or prior to that upon the occurrence of specific
events, the Notes will be convertible by the holders into cash, shares of
common stock, or any combination thereof at the Company's option at an initial
conversion rate of 22.2000 shares per $1,000 principal amount of Notes, which
is equal to an initial conversion price of approximately $45.05 per share.
This represents an approximately 30% conversion premium based on the last
reported sale price of $34.65 per share of the Company's shares on the New
York Stock Exchange on October 10, 2007.
iStar has granted the underwriters a 30-day option to purchase up to an
additional $120 million principal amount of the Notes.
iStar Financial expects to use half of the net proceeds from the offering
to repay outstanding indebtedness under the unsecured interim financing
facility which the Company used to fund its acquisition of the commercial real
estate lending business of Fremont General Corporation. iStar expects to use
the balance of the net proceeds to repay other outstanding indebtedness.
Citi and JPMorgan acted as joint book-running managers for the offering
and as representatives of the underwriters.
Interested parties may obtain a written copy of the final prospectus
supplement and accompanying prospectus relating to the Notes offering by
contacting Citi at Brooklyn Army Terminal, 140 58th Street, 8th Floor,
Brooklyn, NY 11220, telephone: (718) 765-6732, fax: (718) 765-6734; or
JPMorgan at 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, telephone:
(866) 430-0686, fax: (718) 242-1350.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation, or sale would be unlawful
prior to the registration or qualification under the securities laws of any
such jurisdiction. A registration statement relating to the securities has
been filed with the Securities and Exchange Commission and is effective. The
public offering is being made by means of a prospectus supplement and
* * *
iStar Financial Inc. is a leading publicly traded finance company focused
on the commercial real estate industry. The Company primarily provides
custom-tailored investment capital to high-end private and corporate owners of
real estate, including senior and mezzanine real estate debt, senior and
mezzanine corporate capital, as well as corporate net lease financing and
equity. The Company, which is taxed as a real estate investment trust
("REIT"), seeks to deliver strong dividends and superior risk-adjusted returns
on equity to shareholders by providing innovative and value added financing
solutions to its customers. Additional information on iStar Financial is
available on the Company's website at http://www.istarfinancial.com.
(Note: Statements in this press release which are not historical fact may
be deemed forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Although iStar Financial Inc. believes the expectations reflected in any
forward-looking statements are based on reasonable assumptions, the Company
can give no assurance that its expectations will be attained. Factors that
could cause actual results to differ materially from iStar Financial Inc.'s
expectations include completion of pending investments, continued ability to
originate new investments, the mix of originations between structured finance
and corporate tenant lease assets, repayment levels, the timing of receipt of
prepayment penalties, the availability and cost of capital for future
investments, competition within the finance and real estate industries,
economic conditions, loss experience and other risks detailed from time to
time in iStar Financial Inc.'s SEC reports.)
SOURCE iStar Financial Inc.
Catherine D. Rice, Chief Financial Officer
Andrew G. Backman, Vice President - Investor Relations
both of iStar Financial Inc.
Web site: http://www.istarfinancial.com