Starwood Property Trust Announces Private Offering of Sustainability Bonds

Rhea-AI Summary

Starwood Property Trust (NYSE: STWD) has announced a private offering of $400 million in unsecured senior notes due 2030, subject to market conditions. The company plans to use the net proceeds to finance or refinance eligible green and/or social projects. Pending full allocation, the funds will be used for general corporate purposes, including repayment of outstanding indebtedness under the Company's repurchase facilities.

The sustainability bonds will be offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States under Regulation S of the Securities Act. The Notes will not be initially registered under the Securities Act or state securities laws, limiting their offer and sale in the United States without proper registration or exemption.

News Market Reaction – STWD

+1.07%

1 alert

+1.07% News Effect

On the day this news was published, STWD gained 1.07%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

GREENWICH, Conn., Sept. 26, 2024 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that, subject to market and other conditions, it is offering $400 million aggregate principal amount of its unsecured senior notes due 2030 (the "Notes") in a private offering.

The Company intends to allocate an amount equal to the net proceeds from the offering to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Net proceeds allocated to previously incurred costs associated with eligible green and/or social projects will be available for the repayment of indebtedness previously incurred. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the Company intends to use the net proceeds for general corporate purposes, including the repayment of outstanding indebtedness under the Company's repurchase facilities.

The Notes will be offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes will not initially be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the Securities Act or any state securities laws.

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), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of June 30, 2024, the Company has successfully deployed over $98 billion of capital since inception and manages a portfolio of $26 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 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, 2023 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024, including those set forth under the captions "Risk Factors", "Business", and "Management's Discussion and Analysis of Financial Condition and Results of Operations"; (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) the Company's ability to achieve the benefits that it anticipates from the prior acquisition of the project finance origination, underwriting and capital markets business of GE Capital Global Holdings, LLC; (vii) national and local economic and business conditions, including as a result of the impact of public health emergencies; (viii) the occurrence of certain geo-political events (such as wars, terrorist attacks and tensions between states) that affect the normal and peaceful course of international relations; (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

View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-announces-private-offering-of-sustainability-bonds-302259948.html

SOURCE Starwood Property Trust, Inc.

FAQ

What is the size of Starwood Property Trust's (STWD) sustainability bond offering?

Starwood Property Trust (STWD) is offering $400 million aggregate principal amount of unsecured senior notes due 2030, subject to market and other conditions.

How does Starwood Property Trust (STWD) plan to use the proceeds from the sustainability bond offering?

STWD intends to allocate the net proceeds to finance or refinance eligible green and/or social projects, with any remaining funds used for general corporate purposes, including repayment of outstanding indebtedness.

Who is eligible to purchase the sustainability bonds offered by Starwood Property Trust (STWD)?

The sustainability bonds are being offered only to qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States under Regulation S of the Securities Act.

When are the Starwood Property Trust (STWD) sustainability bonds set to mature?

The unsecured senior notes being offered by Starwood Property Trust (STWD) are due in 2030.

Are the sustainability bonds from Starwood Property Trust (STWD) registered under the Securities Act?

No, the sustainability bonds will not initially be registered under the Securities Act or any state securities laws, limiting their offer and sale in the United States without proper registration or exemption.