iStar Financial Announces Pricing of Series J Cumulative Convertible Perpetual Preferred Stock

iStar Financial Announces Pricing of Series J Cumulative Convertible Perpetual
                               Preferred Stock

PR Newswire

NEW YORK, March 12, 2013

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
barclaysprospectus@broadridge.com
1-888-603-5847 (toll free)

BofA Merrill Lynch
222 Broadway
New York, New York 10038
Attn: Prospectus Department
dg.prospectus_requests@baml.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.

Website: http://www.istarfinancial.com
Contact: David M. DiStaso, Chief Financial Officer, or Jason Fooks, Investor
Relations, iStar Financial Inc., +1-212-930-9400, investors@istarfinancial.com
 
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