Starwood Property Trust Announces Pricing of $250 Million Incremental Term Loan

Rhea-AI Summary

Starwood Property Trust, Inc. (NYSE: STWD) has priced a $250 million Term Loan B, maturing in July 2026, at L+350. The loan will help repay part of the $500 million senior notes due in February 2021, callable from November 1, 2020. The company emphasizes its sufficient liquidity to manage this repayment. With a focus on real estate and infrastructure financing, Starwood has successfully deployed over $63 billion since inception, managing a portfolio worth over $17 billion.

Positive

• Successfully priced $250 million Term Loan B to diversify balance sheet and extend debt maturities.
• Sufficient liquidity to repay portion of $500 million senior notes due February 2021.

Negative

• None.

GREENWICH, Conn., Sept. 21, 2020 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) ("the Company") today announced that Starwood Property Mortgage LLC ("SPM"), a wholly owned subsidiary of the Company, has priced a $250 million term loan ("Term Loan B"). The Term Loan B priced at L+350, matures in July 2026 (coterminous with SPM's existing $400 million term loan B), and is callable at any time.

"We are very pleased to have further diversified our balance sheet and extend our debt maturities. We will use the proceeds from the Term Loan B to repay a portion of our $500 million February 2021 senior notes when they open for repayment at par on November 1, 2020. We have ample liquidly today to pay off the remainder of the February 2021 notes, and as we have in the past, will opportunistically look to access the vastly improved debt markets to either accretively make new investments or reduce future debt maturities," stated Andrew Sossen, Chief Operating Officer of Starwood Property Trust. 

 About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. An affiliate of global private investment firm Starwood Capital Group, the Company has successfully deployed over $63 billion of capital since inception and manages a portfolio of over $17 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.

Forward-Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to the anticipated settlement of this offering and the use of proceeds. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from the Company's expectations include: (i) factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, including those set forth under the captions "Risk Factors" and "Business"; (ii) defaults by borrowers in paying debt service on outstanding indebtedness; (iii) impairment in the value of real estate property securing the Company's loans or in which the Company invests; (iv) availability of mortgage origination and acquisition opportunities acceptable to the Company; (v) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vi) national and local economic and business conditions; (vii) general and local commercial and residential real estate property conditions; (viii) changes in federal government policies; (ix) changes in federal, state and local governmental laws and regulations; (x) increased competition from entities engaged in mortgage lending and securities investing activities; (xi) changes in interest rates; and (xii) the availability of, and costs associated with, sources of liquidity.

Contact:
Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com

View original content:http://www.prnewswire.com/news-releases/starwood-property-trust-announces-pricing-of-250-million-incremental-term-loan-301134471.html

SOURCE Starwood Property Trust, Inc.

FAQ

What is the amount of the recent Term Loan B announced by Starwood Property Trust?

Starwood Property Trust announced a Term Loan B of $250 million.

When does the Term Loan B from Starwood Property Trust mature?

The Term Loan B matures in July 2026.

What will the proceeds from the Term Loan B be used for?

The proceeds will be used to repay part of the $500 million senior notes due in February 2021.

When can the $500 million senior notes be repaid?

The $500 million senior notes can be repaid starting on November 1, 2020.