iStar Financial Modifies Debt Exchange Offer Terms and Extends Consent Date for TriNet Corporate Realty Trust
10 February 2005 - 11:30PM
PR Newswire (US)
iStar Financial Modifies Debt Exchange Offer Terms and Extends
Consent Date for TriNet Corporate Realty Trust 7.70% Senior Notes
due 2017 NEW YORK, Feb. 10 /PRNewswire-FirstCall/ -- iStar
Financial Inc. (NYSE: SFI), the leading publicly traded finance
company focused on the commercial real estate industry, and its
subsidiary TriNet Corporate Realty Trust, Inc., announced today
that iStar has amended its offer to exchange iStar Financial Inc.
5.70% Series B Senior Notes due 2014 for any and all of TriNet's
7.70% Senior Notes due 2017 by modifying the fixed spread related
to the exchange price of the TriNet Notes from 160 basis points to
142.5 basis points, as described below. Any holder who has
previously tendered its TriNet Notes in the exchange offer will
automatically receive the benefit of the improved pricing terms and
does not need to re-tender its TriNet Notes. In addition, the
consent date of the offer has been extended to 5:00 p.m., New York
City Time, on Friday, February 11, 2005. Other than the extension
of the Consent Date and the modification of the exchange price of
the TriNet notes described above, all other terms and conditions of
the Offer and Consent Solicitation set forth in the Prospectus
dated January 25, 2005 remain unchanged. In particular, the
expiration date of the Offer continues to be 12:00 midnight, New
York City time, on Thursday, February 24, 2005. For each $1,000
principal amount of TriNet Notes tendered, holders will receive
iStar Notes in an amount equal to $1,000 multiplied by the exchange
ratio. The exchange ratio is equal to the exchange price of the
TriNet Notes, which includes accrued and unpaid interest, divided
by the new issue price of the iStar Notes, which includes accrued
and unpaid interest. Since the iStar Notes will be issued in
denominations of $1,000, the exchange ratio calculation will be
rounded down to the nearest $1,000 principal amount, with the
balance payable in cash. Under the amended terms of the exchange
offer, the exchange price of the TriNet Notes will equal: (1) the
discounted value of the remaining payments of principal and
interest on $1,000 principal amount of TriNet Notes through their
maturity date at a discount rate equal to: (a) the bid-side yield
to maturity on the 4.25% U.S. Treasury Note maturing November 15,
2014, as calculated by Bear, Stearns & Co. Inc., at 2:00 p.m.
New York City time on February 22, 2005 (unless the expiration date
of the exchange is extended); plus (b) a fixed spread of 142.5
basis points (previously 160 basis points). In order to encourage
eligible holders to tender early, the exchange price of the TriNet
Notes includes a consent amount of $20.00 per $1,000 principal
amount. The consent amount is only offered to eligible holders who
validly tender their TriNet Notes on or prior to 5:00 p.m. New York
City time on the new consent date of February 11, 2005 and do not
validly withdraw their tenders on or before that date. The consent
amount of $20.00 per $1,000 principal amount will be deducted from
the exchange price of the TriNet Notes with regard to TriNet Notes
tendered after the consent date. The new issue price of the iStar
Notes will equal: (1) the discounted value of the remaining
payments of principal and interest on $1,000 principal amount of
iStar Notes through their maturity date at a discount rate equal
to: (a) the bid-side yield to maturity on the 4.25% U.S. Treasury
Note maturing November 15, 2014, as calculated by Bear, Stearns
& Co. Inc., at 2:00 p.m. New York City time on February 22,
2005 (unless the expiration date of the exchange is extended); plus
(b) a fixed spread of 125 basis points. Based upon the yield of the
4.25% U.S. Treasury Note maturing November 15, 2014 at 5:00 p.m.
New York City time on February 9, 2005, the exchange price of the
TriNet Notes, inclusive of the consent amount, and the new issue
price of the iStar Notes would have been $1,212.84, and $1,031.95,
respectively, and the exchange ratio would have been 1.175290.
Excluding payment of the consent amount, the exchange price of the
TriNet Notes would have been $1,192.84 and the exchange ratio would
have been 1.155909. As stated above, any holder who has previously
tendered their TriNet Notes in the exchange offer will
automatically receive the benefit of the improved pricing terms
described above and the consent amount; such holder does not need
to re-tender their TriNet Notes. Holders who have not yet tendered
their TriNet Notes but wish to do so, may still use the blue
Consent and Letter of Transmittal form that was transmitted to
holders as part of the original set of offer materials dated
January 25, 2005. Holders of TriNet Notes that are tendering by
book-entry transfer to the Exchange Agent's account at The
Depository Trust Company can execute their tender through DTC's
Automated Tender Offer Program. iStar Financial's obligation to
exchange notes that are tendered will be subject to customary
conditions, including that at least a majority in principal amount
of the TriNet Notes are properly tendered and not validly
withdrawn. iStar Financial has the right to waive these and the
other conditions. The indenture amendments relating to the TriNet
Notes will become effective if holders of a majority in principal
amount of the TriNet Notes tender their TriNet Notes and do not
withdraw them before a supplemental indenture relating to the
amendments is executed. To the extent iStar Financial Inc. receives
the requisite consents, we expect to enter into a supplemental
indenture giving effect to the proposed amendments on the consent
date. However, the amendments will not become operative until iStar
Financial accepts and consummates the exchange of all notes validly
tendered. If the amendments with regard to the TriNet Notes become
operative, they will be effective as of the date a supplemental
indenture was executed. Holders who tender TriNet Notes will be
able to withdraw them until the supplemental indenture relating to
the TriNet Notes is executed. If we do not receive notes and
related consents from a majority in aggregate principal amount of
TriNet Notes, but nonetheless decide to accept the notes of that
issue that have been tendered, withdrawal rights with respect to
the TriNet Notes will end at the expiration time of the offer.
Bear, Stearns & Co Inc. is acting as dealer manager in
connection with the Exchange Offer and Consent Solicitation.
Questions regarding the Exchange Offer may be directed to Bear,
Stearns & Co. Inc., Global Liability Management Group, at (877)
696-BEAR (2327) (U.S. toll-free). Copies of offer materials can be
obtained from Georgeson Shareholder at 17 State Street, 10th Floor,
New York, NY 10004, by telephone at (866) 873-6993. This
announcement is not an offer of iStar Notes or a solicitation of
consents with respect to the TriNet Notes. The exchange offer and
consent solicitation is being made solely by a Prospectus dated
February 10, 2005, and a form of Consent and Letter of Transmittal
that accompanied the original Prospectus dated January 25, 2005.
iStar Financial is the leading publicly traded finance company
focused on the commercial real estate industry. The Company
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. The Company, which is taxed as a
real estate investment trust, seeks to deliver a strong dividend
and superior risk-adjusted returns on equity to shareholders by
providing the highest quality financing solutions to its customers.
Additional information on iStar Financial is available on the
Company's website at http://www.istarfinancial.com/. DATASOURCE:
iStar Financial Inc. CONTACT: Catherine D. Rice, Chief Financial
Officer, or Andrew C. Richardson, Executive Vice President -
Capital Markets, or Andrew G. Backman, Vice President - Investor
Relations, all of iStar Financial Inc., +1-212- 930-9400 Web site:
http://www.istarfinancial.com/
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