ITEM 8.01 Other Events.
Issuance of Notes
On December 16, 2019, iStar Inc. (the "Company") issued $550 million aggregate
principal amount of the Company's 4.250% Senior Notes due 2025 (the "Notes").
The Notes were issued pursuant to a base indenture, dated as of February 5, 2001
(the "Base Indenture"), as amended and supplemented by a supplemental indenture
with respect to the Notes, dated as of December 16, 2019 (as supplemented, the
"Indenture"), between the Company and U.S. Bank National Association (the
"Trustee"). The Notes are unsecured, senior obligations of the Company and rank
equally in right of payment with all of the Company's existing and future
unsecured, unsubordinated indebtedness.
The Notes were issued at 100% of their principal amount. The Notes bear
interest at an annual rate of 4.250% and mature on August 1, 2025. The Company
will pay interest on the Notes on each February 1 and August 1, commencing on
February 1, 2020.
Prior to May 1, 2025 (three months prior to the maturity date), the Company may
redeem some or all of the Notes at any time and from time to time at a price
equal to 100% of the principal amount thereof, plus the applicable "make-whole"
premium and accrued but unpaid interest, if any, to, but excluding, the date of
redemption. On or after May 1, 2025 (three months prior to the maturity date),
the Company may redeem some or all of the Notes at any time and from time to
time at 100% of the principal amount thereof, plus accrued but unpaid interest,
if any, to, but excluding, the date of redemption. In addition, prior to August
1, 2022, the Company may redeem up to 35% of the Notes using the proceeds of
certain equity offerings at a redemption price equal to 104.25% of the principal
amount of the Notes redeemed, plus accrued but unpaid interest, if any, to, but
excluding, the date of redemption.
Upon the occurrence of a Change of Control Triggering Event (as defined in the
Indenture), each holder of the Notes has the right to require the Company to
purchase all or a portion of such holder's Notes at a purchase price equal to
101% of the principal amount thereof, plus accrued but unpaid interest, if any,
to, but excluding, the date of redemption.
The Company will use the net proceeds of the sale of the Notes to fund the
Tender Offer and the Redemption (each as defined below), to repay a portion of
borrowings outstanding under its $650 million senior secured term loan (the
"2016 Credit Agreement") and to pay any related premiums, penalties, fees and
expenses in connection with the foregoing.
A copy of the supplemental indenture relating to the Notes is attached hereto as
Exhibit 4.1, and is incorporated by reference herein. The Base Indenture has
been previously incorporated by reference as an exhibit to the Company's
Form S-3 filed on September 6, 2017. A copy of the form of global note for the
Notes is attached hereto as Exhibit 4.2 and incorporated by reference herein.
For a complete description of the Notes, please see the full text of the
Indenture and global note.
Tender Offer Expiration, Tender Offer Settlement and Redemption of the 6.00%
Senior Notes due 2022
On December 12, 2019, the Company issued a press release announcing the
expiration and the results of the previously announced abbreviated cash tender
offer (the "Tender Offer") for any and all of its outstanding $375 million
aggregate principal amount of 6.00% Senior Notes due 2022 (the "2022 Notes"), a
copy of which is attached as Exhibit 99.1 hereto and is incorporated herein by
reference. The anticipated settlement date of the Tender Offer is December 17,
2019.
The Company expects to redeem in full the aggregate principal amount of the 2022
Notes that were not tendered and remain outstanding following the expiration of
the Tender Offer (the "Redemption"). Pursuant to the terms of the indenture
governing the 2022 Notes, the Redemption is expected to occur on January 6,
2020.
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Certain of the underwriters of the offering of the Notes and/or their affiliates
may hold a portion of the Company's 2022 Notes or are lenders under the 2016
Credit Agreement. Any underwriter or affiliate of an underwriter that is a
lender under the 2016 Credit Agreement or that holds such securities will
receive a portion of the proceeds from the offering of the Notes to the extent
such proceeds are used in the repayment of such indebtedness.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits.
4.1 Thirty-fourth Supplemental Indenture, dated December 16, 2019, between
iStar Inc. and U.S. Bank National Association, as trustee.
4.2 Form of global certificate for the 4.25% Senior Notes due 2025
(contained in Exhibit 4.1)
5.1 Opinion of Clifford Chance US LLP regarding the legality of the
Notes.
23.1 Consent of Clifford Chance US LLP (included in Exhibit 5.1).
99.1 Press Release dated December 12, 2019 announcing the expiration and
the results of the Tender Offer.
104 Cover Page Interactive Data File-the cover page XBRL tags are embedded
within the Inline XBRL document
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