NEW YORK, March 12, 2013 /PRNewswire/ -- iStar Financial Inc. (NYSE: SFI) announced today that it has priced an offering of 3,500,000 shares, or $175 million aggregate liquidation preference, of its 4.5% Series J Cumulative Convertible Perpetual Preferred Stock ("Series J Convertible Preferred Stock"). The underwriters have the option to purchase up to 500,000 additional shares, or $25 million aggregate liquidation preference, of Series J Convertible Preferred Stock. The Company intends to use the net proceeds of the offering for new investment activities and general corporate purposes.
The annual dividend on each share of Series J Convertible Preferred Stock is $2.25 and is payable when, as and if authorized by the Company's Board of Directors and declared by the Company, quarterly in cash on each March 15, June 15, September 15 and December 15, commencing on June 15, 2013. Each share of the Series J Convertible Preferred Stock has a liquidation preference of $50.00 per share and is initially convertible into 3.9087 shares of common stock (equal to an initial conversion price of approximately $12.79 per share). This represents an approximately 20% conversion premium based on the last reported sale price of $10.66 per share of the Company's common stock on the New York Stock Exchange on March 12, 2013.
Barclays Capital Inc., BofA Merrill Lynch, and J.P. Morgan are the joint book-running managers for the offering. The Series J Convertible Preferred Stock will be issued pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy the offered securities, nor shall there be any sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
The Series J Convertible Preferred Stock was offered by means of the preliminary prospectus supplement and accompanying prospectus. Electronic copies of the preliminary prospectus supplement and accompanying prospectus may be obtained for free by searching the SEC online database (EDGAR) on the SEC website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and accompanying prospectus may be obtained by contacting the joint book-running managers at the following addresses or telephone numbers:
Barclays Capital Inc. c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, New York 11717 firstname.lastname@example.org 1-888-603-5847 (toll free)
BofA Merrill Lynch 222 Broadway New York, New York 10038 Attn: Prospectus Department email@example.com
J.P. Morgan Securities LLC c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, New York 11717 1-866-803-9204 (toll free)
SOURCE iStar Financial Inc.