Starwood Property Trust Announces Pricing of Common Stock Offering

Rhea-AI Summary

Starwood Property Trust (NYSE: STWD) has priced a public offering of 16,000,000 common stock shares, aiming for gross proceeds of approximately $397.1 million, or $456.7 million if the option for additional shares is exercised. The underwriters hold a 30-day option for up to 2,400,000 shares. Proceeds will be used to purchase commercial mortgage loans and for corporate purposes. Settlement is expected on December 10, 2021. The Company has deployed over $76 billion in capital since inception, managing a portfolio exceeding $21 billion.

Positive

• Offering of 16,000,000 shares priced at approximately $397.1 million.
• Potential total gross proceeds of $456.7 million with additional share option.
• Use of proceeds for lucrative commercial mortgage loans and investments.
• Strong historical capital deployment exceeding $76 billion.

Negative

• None.

GREENWICH, Conn., Dec. 7, 2021 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced the pricing of an underwritten public offering of 16,000,000 shares of its common stock for total estimated gross proceeds of approximately $397.1 million (or approximately $456.7 million if the option to purchase additional shares is exercised in full).  The underwriters have a 30-day option to purchase up to an additional 2,400,000 shares from the Company.  Settlement of the offering is subject to customary closing conditions and is expected to occur on December 10, 2021.  All of the shares will be issued under the Company's currently effective shelf registration statement filed with the Securities and Exchange Commission.

The Company intends to use the net proceeds received from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments. The Company may also use a portion of the net proceeds for other general corporate purposes, including, but not limited to, the payment of liabilities and other working capital needs.

Citigroup, BofA Securities, Morgan Stanley and Wells Fargo Securities are serving as joint book-running managers and BTIG and Keefe, Bruyette & Woods, A Stifel Company are serving as co-managers for the offering.

The offering of these securities may be made only by means of a prospectus and a related prospectus supplement, a copy of which may be obtained by contacting: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (800) 831-9146; BofA Securities, Attention: Prospectus Department, NC1-004-03-43, 200, North College Street, 3rd floor, Charlotte, NC 28255-0001, or by emailing dg.prospectus_requests@bofa.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; or Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 30 Hudson Yards, 500 West 33rd Street - 14th Floor, New York, NY 10001, telephone: (800) 326-5897 or email: cmclientsupport@wellsfargo.com.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any state or 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 jurisdiction.

About Starwood Property Trust, Inc.

Starwood Property Trust, Inc. (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 $76 billion of capital since inception and manages a portfolio of over $21 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.

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 and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to the anticipated 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, 2020 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, including those set forth under the captions "Risk Factors", "Business", and "Management's Discussion and Analysis of Financial Condition and Results of Operations"; (ii) the severity and duration of the pandemic of the novel strain of coronavirus ("COVID-19"), actions that may be taken by governmental authorities to contain the COVID-19 outbreak, including variants and resurgences, or to treat its impact and the adverse impacts that the COVID-19 pandemic has had, and will likely continue to have, on the global economy, on the borrowers underlying the Company's real estate-related assets and infrastructure loans and tenants of the Company's owned properties, including their ability to make payments on their loans or to pay rent, as the case may be, and on the Company's operations and financial performance; (iii) defaults by borrowers in paying debt service on outstanding indebtedness; (iv) impairment in the value of real estate property securing the Company's loans or in which the Company invests; (v) availability of mortgage origination and acquisition opportunities acceptable to the Company; (vi) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vii) the Company's ability to integrate its prior acquisition of the project finance origination, underwriting and capital markets business of GE Capital Global Holdings, LLC into its business and to achieve the benefits that the Company anticipates from the acquisition; (viii) national and local economic and business conditions, including continued disruption from the COVID-19 pandemic; (ix) general and local commercial and residential real estate property conditions; (x) changes in federal government policies; (xi) changes in federal, state and local governmental laws and regulations; (xii) increased competition from entities engaged in mortgage lending and securities investing activities; (xiii) changes in interest rates; and (xiv) the availability of, and costs associated with, sources of liquidity.

Contact:

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

 

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SOURCE Starwood Property Trust, Inc.

FAQ

What is the stock offering price for Starwood Property Trust (STWD)?

Starwood Property Trust (STWD) has priced a public offering of 16,000,000 shares of its common stock at approximately $397.1 million.

What are the total estimated proceeds if the option to purchase additional shares is exercised for STWD?

If the 30-day option for additional shares is exercised, total estimated proceeds could reach approximately $456.7 million.

When is the settlement date for the common stock offering of STWD?

The settlement date for the offering is expected to occur on December 10, 2021.

What will Starwood Property Trust (STWD) use the proceeds from the stock offering for?

The net proceeds will be utilized to originate and purchase commercial mortgage loans and for other general corporate purposes.

Who are the joint book-running managers for the STWD stock offering?

Citigroup, BofA Securities, Morgan Stanley, and Wells Fargo Securities are serving as joint book-running managers for the offering.