iStar Financial (SFI) Enters New $880M Secured Facility

iStar Financial Inc. (NYSE: SFI) announced today 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%.

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.

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