iStar Financial Prices Senior Note Offering

August 9, 2001 at 2:54 PM EDT

NEW YORK, Aug. 9 /PRNewswire/ -- iStar Financial Inc. (NYSE: SFI) today announced that it has agreed to pricing terms for an offering of $350 million of 8.75% Senior Notes due 2008. The offering is being underwritten by Deutsche Banc Alex. Brown, Bear, Stearns & Co. Inc., Fleet Securities, Inc. and UBS Warburg LLC. The closing of the offering is subject to customary closing conditions.

The Notes are unsecured senior obligations of iStar Financial. Proceeds of the offering to iStar Financial, after expenses of the offering, will be approximately $342 million. iStar Financial will use the proceeds to repay outstanding borrowings under secured credit facilities.

Spencer B. Haber, iStar Financial's president and chief financial officer, commented, "We are very pleased with investors' reception of iStar Financial's inaugural corporate bond offering. The offering was heavily oversubscribed, and we received very meaningful participation from both investment-grade and high-yield investors. Based on the level of demand, we upsized the offering from $200 million to $350 million. In addition, we priced the bonds at the tight end of our expected range."

iStar Financial is the largest publicly traded finance company focused exclusively on the commercial real estate industry. The Company provides structured financing to private and corporate owners of real estate nationwide, including senior and junior mortgage debt, corporate mezzanine and subordinated capital, and corporate net lease financing. The Company, which is taxed as a real estate investment trust, seeks to deliver 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 Web site at

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SOURCE iStar Financial Inc.

CONTACT: Spencer B. Haber, President and Chief Financial Officer, or Lianne A. Merchant, Vice President, Investor Relations, or Erin C. Hart, Associate, Investor Relations, all of iStar Financial Inc., +1-212-930-9400/