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NEW YORK CITY-Publicly traded finance company iStar Financial Inc. will sell $250 million of fixed-rate notes and $225 million of floating-rate notes in an underwritten public offering. The REIT expects to use proceeds from the sale to repay outstanding balances on its unsecured revolving credit facility.

"Our job is not about taking complex deals and making them more complex, " said iStar's chairman and chief executive officer Jay Sugarman during a recent presentation. "It is about looking at complex real estate, corporate credit, and capital market transactions and really distilling them down to the essence of the deal and providing a solution where the customer thinks, 'Yes, that makes sense.'"

All of the notes are senior, unsecured debt securities of the company. Up for sale are $250 million of fixed rate 5.80% senior notes due 2011 at 99.9% of their principal amount to yield 5.824% per annum and $225 million of senior floating-rate Notes due 2009.

The offering is expected to close on Dec. 14. Merrill Lynch & Co., Inc. and UBS Investment Bank are acting as joint book running managers of the offering. HSBC Inc., RBC Capital Markets and Scotia Capital Inc. are acting as co-managers.iStar Financial provides custom-tailored financing to high-end private and corporate owners of real estate nationwide, including senior and junior mortgage debt, senior and mezzanine corporate capital and corporate net lease financing. "We look forward into the next five years for iStar," Sugarman continued. "It is really a function of building the best in class platforms in each of those three circles you see. Having real true real estate knowledge. Having in-house architects, engineers understand the construction and management of real estate across all major asset classes, all major geographic regions, really having a deep down and dirty understanding of real estate at the ground level and then combining that with a very sophisticated expertise in both the capital markets and the corporate credit markets."

Instant Insights /

iStar Will Sell $475M in Senior Notes to Repay Debt

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