Skip to content
Open Search Panel
Toggle Menu
<< Back to News
05/07/2009

iStar Financial Announces Results and Expiration of Private Exchange Offers and Cash Tender Offer for Outstanding Debt Securities

NEW YORK, May 7 /PRNewswire-FirstCall/ -- iStar Financial Inc. (NYSE: SFI) announced today the final results of its previously announced private offers to exchange a portion of the Company's existing senior unsecured notes (the "Old Notes") for new second-lien senior secured notes issued by the Company and guaranteed by certain of its subsidiaries, as well as the Company's cash tender offer to purchase a portion of its outstanding Series B Senior Floating Rate Notes due September 2009 (the "September 2009 Notes"). The exchange offers and the cash tender offer (collectively, the "Offers") each expired at midnight, New York City time, on May 6, 2009 (the "Expiration Date").

As of the Expiration Date, (i) approximately $163.4 million aggregate principal amount of priority 1 notes had been validly tendered (and not withdrawn) for exchange for 8.0% Second-Priority Senior Secured Guaranteed Notes due March 2011 (the "New 2011 Second Lien Notes"), (ii) approximately $673.9 million aggregate principal amount of priority 2 notes had been validly tendered (and not withdrawn) for exchange for 10.0% Second-Priority Senior Secured Guaranteed Notes due June 2014 (the "New 2014 Second Lien Notes" and, together with the New 2011 Second Lien Notes, the "New Notes"), (iii) approximately $176.8 million aggregate principal amount of priority 3 notes had been validly tendered (and not withdrawn) for exchange for New 2014 Second Lien Notes and (iv) approximately $12.5 million aggregate principal amount of September 2009 Notes had been validly tendered and not withdrawn in the cash tender offer. Upon the terms and subject to the conditions of the exchange offers, all of Old Notes validly tendered (and not withdrawn) have been accepted for exchange. Upon the terms and subject to the conditions of the tender offer, all of the September 2009 Notes validly tendered (and not withdrawn) have been accepted for payment.

The table below shows the results of the exchange offers for each series of Old Notes.


                                   Principal       Principal      Principal
                 Title of            Amount          Amount         Amount
                 Old Notes        Outstanding     Tendered and    Outstanding
      CUSIP      Tendered        Before Offers      Accepted      After Offers
    ---------  ---------------   -------------    ------------    ------------
    45031UBE0  Senior Floating    $473,000,000    $135,960,000    $337,040,000
               Rate Notes due
               March 2010

    45031UAS0  5.375% Senior      $235,000,000     $27,476,000    $207,524,000
               Notes due
               April 2010

    45031UBG5  8.625% Senior      $680,658,000     $80,457,000    $600,201,000
               Notes due
               June 2013

    45031UAZ4  5.95% Series B     $780,432,000    $271,302,000    $509,130,000
               Senior Notes
               due October 2013

    45031UAC5  6.5% Senior        $123,490,000     $28,855,000     $94,635,000
               Notes due
               December 2013

    45031UAH4  5.7% Series B      $290,009,000     $83,408,000    $206,601,000
               Senior Notes
               due March 2014

    45031UAG6  5.7% Series A        $1,840,000      $1,840,000              $-
               Senior Notes
               due March 2014

    45031UAT8  6.05% Senior       $179,194,000     $73,429,000    $105,765,000
               Notes due
               April 2015

    45031UAW1  5.875% Senior      $370,488,000     $79,820,000    $290,668,000
               Notes due
               March 2016

    45031UBD2  5.85% Senior       $154,505,000     $54,783,000     $99,722,000
               Notes due
               March 2017

    45031UAB7  6.0% Senior        $325,402,000     $23,764,000    $301,638,000
               Notes due
               December 2010

    45031UAU5  5.8% Senior        $224,500,000      $4,238,000    $220,262,000
               Notes due
               March 2011

    45031UAP6  5.125% Series B    $234,150,000     $22,322,000    $211,828,000
               Senior Notes
               due April 2011

    45031UAX9  5.65% Senior       $416,022,000     $41,877,000    $374,145,000
               Notes due
               September 2011

    45031UAR2  5.15% Senior       $587,768,000     $40,418,000    $547,350,000
               Notes due
               March 2012

    45031UBC4  5.5% Senior        $230,700,000     $44,220,000    $186,480,000
               Notes due
               June 2012


                  Title of             Principal Amount       Acceptance
                  New Notes             of New Notes           Priority
      CUSIP        Issued                  Issued               Level
    ---------     -----------           ---------------       ----------
    45031UBE0     New 2011               $129,153,000              1
                  Second Lien
                  Notes

    45031UAS0     New 2011                $26,100,000              1
                  Second Lien
                  Notes

    45031UBG5     New 2014                $48,273,000              2
                  Second Lien
                  Notes

    45031UAZ4     New 2014               $149,200,000              2
                  Second Lien
                  Notes

    45031UAC5     New 2014                $15,861,000              2
                  Second Lien
                  Notes

    45031UAH4     New 2014                $45,867,000              2
                  Second Lien
                  Notes

    45031UAG6     New 2014                   $956,000              2
                  Second Lien
                  Notes

    45031UAT8     New 2014                $40,374,000              2
                  Second Lien
                  Notes

    45031UAW1     New 2014                $39,892,000              2
                  Second Lien
                  Notes

    45031UBD2     New 2014                $27,390,000              2
                  Second Lien
                  Notes

    45031UAB7     New 2014                $16,631,000              3
                  Second Lien
                  Notes

    45031UAU5     New 2014                 $2,751,000              3
                  Second Lien
                  Notes

    45031UAP6     New 2014                $14,469,000              3
                  Second Lien
                  Notes

    45031UAX9     New 2014                $27,193,000              3
                  Second Lien
                  Notes

    45031UAR2     New 2014                $24,159,000              3
                  Second Lien
                  Notes

    45031UBC4     New 2014                $26,532,000              3
                  Second Lien
                  Notes

The Company anticipates that the settlement date of the Offers will be May 8, 2009. Following the settlement date, the Company may from time to time seek to retire or purchase its outstanding debt through cash purchases and/or exchanges, in open market purchases, in privately negotiated transactions or otherwise.

The New Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any other applicable securities laws and, unless so registered, the New Notes may not be offered, sold, pledged or otherwise transferred within the United States or to or for the account or benefit of any U.S. person, except pursuant to an exemption from the registration requirements of the Securities Act. Accordingly, the New Notes have been offered and will be issued only (i) in the United States, to "qualified institutional buyers" (as defined in Rule 144A under the Securities Act), and (ii) outside the United States to persons who are not U.S. persons (as defined in Regulation S under the Securities Act) and who are non-U.S. qualified offerees.

This press release is for informational purposes only and is neither an offer to purchase any notes nor a solicitation of an offer to sell the New Notes.

This press release includes statements that are considered "forward-looking statements." These forward-looking statements reflect the Company's current views about its plans, strategies and prospects, which are based on the information currently available to it and on assumptions that the Company's management has made. Although the Company believes that its plans, intentions and expectations as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that the plans, intentions or expectations will be achieved. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. In evaluating forward-looking statements, you should consider these risks and uncertainties, and you should not place undue reliance on those statements.

SOURCE iStar Financial Inc.

CONTACT:
Andrew G. Backman,
Senior Vice President - Investor Relations,
or James D. Burns,
Chief Financial Officer,
both of iStar Financial Inc.,
+1-212-930-9400
Web Site: http://www.istarfinancial.com
(SFI SFI)

<< Back to News