NEW YORK, June 20, 2018 /PRNewswire/ -- iStar Inc. (NYSE: STAR) announced it has received commitments from lenders to re-price, amend and extend its senior secured term loan. The principal amount of the amended term loan will be increased to $650 million from $377 million, the annual interest rate will be reduced to LIBOR plus 2.75% from LIBOR plus 3.00% and the maturity date will be extended to June 2023 from October 2021. The amended term loan will be priced at 99.875% and call protection for lenders will be reset for six months.
The amended term loan will be collateralized by the pledge of stock of entities that own existing and new assets, with asset addition and substitution flexibility within specified parameters. In addition, the amended term loan will include the ability to pay dividends subject to certain conditions. A corresponding amendment of the dividend restrictions in the Company's revolving credit facility is being entered into concurrently with the amended term loan. Proceeds from the new term loan facility will be used to repay the outstanding current term loan facility and to redeem a portion of the Company's $770 million of senior unsecured notes due July 2019. Closing of the amended term loan is subject to customary conditions and there can be no assurance that the closing will occur.
J.P. Morgan is acting as lead left bookrunner and J.P. Morgan, Barclays, Bank of America Merrill Lynch and Morgan Stanley are serving as joint lead arrangers and bookrunners.
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iStar (NYSE: STAR) finances, invests in and develops real estate and real estate related projects as part of its fully-integrated investment platform. Building on over two decades of experience and more than $35 billion of transactions, iStar brings uncommon capabilities and new ways of thinking to commercial real estate and adapts its investment strategy to changing market conditions. The Company is structured as a real estate investment trust ("REIT"), with a diversified portfolio focused on larger assets located in major metropolitan markets. Additional information on iStar is available on its website at www.istar.com.
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Jason Fooks, Vice President of Investor Relations & Marketing