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iStar Financial Inc. Message Board

  • goldencowrie goldencowrie May 6, 2012 9:29 AM Flag

    June 2013 is a critical month for SFI

    It is now clear that SFI's 2012 maturities are easily covered.

    June 2013 is the real issue - about 744 million is due at that time on the 2011 secured facility and also about 502 million of unsecured bonds are due (with the highest coupon of any SFI bonds, less than 100 basis points lower than the new private offering of notes). Total of approx 1.246 billion.

    If you run the numbers, it now also seems reasonably clear that SFI will have the cash to pay off the entire 1.246 billion due in June 2013 if they want to. This would have the immediate effect of making the June 2014 7% tranche of the same secured facility a first lien. This should allow SFI to immediately push back and refi that tranche at no more than 5%, further cutting SFI's interest expense.

    At that point SFI would probably have no need to deleverage further. Also at that point their interest expense will have been drastically reduced and their cost of funding should start heading lower. A HUGE turning point in SFI's recovery.

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