iStar Enters Into $880 Million Agreement With Barclays, Others
iStar Financial Inc. announced that it has entered into a new $880 million senior secured credit agreement providing for two tranches of term loans: a $410 million 2012 A-1 tranche due March 19, 2016, which bears interest at a rate of LIBOR plus 4.00%, and a $470 million 2012 A-2 tranche due March 19, 2017, which bears interest at a rate of LIBOR plus 5.75%. The 2012 A-1 and A-2 tranches were issued at 98.0% of par and 98.5% of par, respectively, and both tranches include a LIBOR floor of 1.25%.
Barclays Capital and Bank of America Merrill Lynch acted as joint lead arrangers and together with J.P. Morgan Securities as joint bookrunners for the new financing.
Outstanding borrowings under the new financing will be collateralized by a first lien on a fixed pool of approximately $1.10 billion of assets. Proceeds from principal repayments and sales of collateral will be applied to amortize outstanding borrowings. Cumulative amortization payments of $41 million must be made on the 2012 A-1 tranche every six months beginning December 31, 2012. After the 2012 A-1 tranche is repaid, proceeds from principal repayments and sales of collateral will be directed to amortize the 2012 A-2 tranche.
iStar Financial Inc. is a fully-integrated finance and investment company focused on the commercial real estate industry.