SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Securities registered pursuant to Section 12(b) of the Act:
|Title of each class||Trading Symbol(s)||Name of each exchange on which registered|
|ITEM 1.01||Entry into a Material Definitive Agreement.|
|ITEM 2.03||Creation of a Direct Financial Obligation.|
|ITEM 8.01||Other Events|
Issuance of Notes
On September 1, 2020, iStar Inc. (the “Company”) issued $400.0 million aggregate principal amount of the Company’s 5.500% Senior Notes due 2026 (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 September 1, 2020 (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 Company will use the net proceeds from the sale of the Notes, together with cash on hand, to redeem the $400.0 million aggregate principal amount outstanding of its 5.250% Senior Notes due 2022 and to pay related premiums, fees and expenses.
The Notes were issued at 100% of their principal amount. The Notes bear interest at an annual rate of 5.500% and mature on February 15, 2026. The Company will pay interest on the Notes on each February 15 and August 15, commencing on February 15, 2021.
Prior to August 15, 2022, 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 August 15, 2022, the Company may redeem some or all of the Notes at the prices and as described in the Indenture. In addition, prior to August 15, 2022, the Company may redeem up to 35% of the Notes using the proceeds of certain equity offerings at a redemption price equal to 105.500% 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.
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 June 10, 2020. 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.
Redemption of Existing Notes
The Company will use the net proceeds of the sale of the Notes and cash on hand to redeem the $400.0 million aggregate principal amount outstanding of the Company's 5.250% Senior Notes due 2022 and to pay related premiums, fees and expenses. The redemption of the Company's 5.250% Senior Notes due 2022 will be made solely pursuant to a redemption notice delivered pursuant to the applicable indentures on August 18, 2020, and nothing contained in this Current Report on Form 8-K constitutes a notice of redemption of the Company's 5.250% Senior Notes due 2022.
Certain of the underwriters of the Notes and/or their affiliates may hold a portion of the foregoing securities being redeemed and may receive a portion of the net proceeds of the sale of the Notes.
|ITEM 9.01||Financial Statements and Exhibits.|
|4.1||Thirty-fifth Supplemental Indenture, dated September 1, 2020, between iStar Inc. and U.S. Bank National Association, as trustee.|
|4.2||Form of global certificate for the 5.500% Senior Notes due 2026 (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).|
|104||Cover Page Interactive Data File-the cover page XBRL tags are embedded within the Inline XBRL document|
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
|Date:||September 1, 2020||By:||/s/ Jeremy Fox-Geen|
Chief Financial Officer