Starwood Property Trust Completes Capital Markets Transactions
Starwood Property Trust (NYSE: STWD) has completed several significant capital markets transactions in December 2024, strengthening its financial position. The company priced $500 million in sustainability notes due July 2030, extended and upsized its $767 million Term Loan B to $900 million, increased its revolving credit facility by $50 million to $200 million, and repriced its $590 million Term Loan B to $690 million.
These transactions have collectively extended the weighted average corporate debt maturity from 2.2 to 3.5 years, lowered borrowing costs, and generated $783 million of new capital for deployment. The company achieved record-low spreads on its debt facilities and will have no corporate debt maturities until July 2026 after repaying upcoming notes.
Starwood Property Trust (NYSE: STWD) ha completato diverse importanti operazioni nei mercati dei capitali a dicembre 2024, rafforzando la sua posizione finanziaria. L'azienda ha emesso note di sostenibilità per 500 milioni di dollari con scadenza luglio 2030, ha esteso e aumentato il suo Term Loan B da 767 milioni di dollari a 900 milioni, ha incrementato la sua linea di credito revolving di 50 milioni di dollari, portandola a 200 milioni di dollari, e ha ristrutturato il suo Term Loan B da 590 milioni di dollari a 690 milioni di dollari.
Queste operazioni hanno complessivamente esteso la scadenza media ponderata del debito corporate da 2.2 a 3.5 anni, ridotto i costi di prestito e generato 783 milioni di dollari di nuovo capitale da investire. L'azienda ha raggiunto spread record sui suoi finanziamenti e non avrà scadenze di debito corporate fino a luglio 2026 dopo aver rimborsato le note in scadenza.
Starwood Property Trust (NYSE: STWD) ha completado varias transacciones importantes en los mercados de capitales en diciembre de 2024, fortaleciendo su posición financiera. La compañía emitió notas de sostenibilidad por 500 millones de dólares con vencimiento en julio de 2030, extendió y aumentó su Préstamo a Plazo B de 767 millones de dólares a 900 millones, incrementó su línea de crédito revolving en 50 millones de dólares, alcanzando 200 millones de dólares, y reestructuró su Préstamo a Plazo B de 590 millones de dólares a 690 millones de dólares.
Estas transacciones han extendido conjuntamente el vencimiento promedio ponderado de la deuda corporativa de 2.2 a 3.5 años, reducido costos de endeudamiento y generado 783 millones de dólares de nuevo capital para su uso. La compañía logró diferenciales récord en sus facilidades de deuda y no tendrá vencimientos de deuda corporativa hasta julio de 2026 después de pagar las notas venideras.
스타우드 재산 신탁 (NYSE: STWD)는 2024년 12월에 여러 중요한 자본 시장 거래를 완료하여 재무 상태를 강화했습니다. 회사는 2030년 7월 만기되는 5억 달러의 지속 가능성 노트를 가격 책정하였고, 7억 6천7백만 달러의 대출 B를 9억 달러로 연장 및 확대하였으며, 회전 신용 시설을 5천만 달러 증가시켜 2억 달러로 했고, 5억 9천만 달러의 대출 B를 6억 9천만 달러로 재가격 조정했습니다.
이 거래들은 기업 부채의 가중 평균 만기를 2.2년에서 3.5년으로 연장하고, 차입 비용을 낮추며, 7억 8천3백만 달러의 새로운 자본을 생성했습니다. 회사는 채무 시설에서 기록적인 스프레드 낮춤을 달성하였으며, 다가오는 노트를 상환한 후 2026년 7월까지 기업 부채 만기가 없습니다.
Starwood Property Trust (NYSE: STWD) a finalisé plusieurs transactions importantes sur les marchés de capitaux en décembre 2024, renforçant ainsi sa position financière. La société a fixé un prix de 500 millions de dollars pour des obligations de durabilité arrivant à échéance en juillet 2030, a prolongé et augmenté son Prêt à Terme B de 767 millions de dollars à 900 millions de dollars, a augmenté sa ligne de crédit renouvelable de 50 millions de dollars pour atteindre 200 millions de dollars et a revalorisé son Prêt à Terme B de 590 millions de dollars à 690 millions de dollars.
Ces transactions ont étendu la durée moyenne pondérée de la dette d'entreprise de 2,2 à 3,5 ans, réduit les coûts d'emprunt et généré 783 millions de dollars de nouveau capital à déployer. L'entreprise a atteint des spreads historiquement bas sur ses facilités de crédit et n'aura pas d'échéances de dette d'entreprise jusqu'en juillet 2026 après avoir remboursé les obligations à venir.
Starwood Property Trust (NYSE: STWD) hat im Dezember 2024 mehrere bedeutende Transaktionen an den Kapitalmärkten abgeschlossen, die seine finanzielle Position gestärkt haben. Das Unternehmen hat Nachhaltigkeitsanleihen in Höhe von 500 Millionen Dollar mit Fälligkeit im Juli 2030 begeben, sein Term Loan B von 767 Millionen Dollar auf 900 Millionen Dollar ausgeweitet und erhöht, seine revolvierende Kreditlinie um 50 Millionen Dollar auf 200 Millionen Dollar erhöht und sein Term Loan B von 590 Millionen Dollar auf 690 Millionen Dollar neu bewertet.
Diese Transaktionen haben das gewichtete durchschnittliche Fälligkeitsdatum der Unternehmensschuld von 2,2 auf 3,5 Jahre verlängert, die Kreditkosten gesenkt und 783 Millionen Dollar an neuem Kapital zur Verfügung gestellt. Das Unternehmen hat rekordverdächtige Spreads bei seinen Schuldenfinanzierungen erreicht und wird bis Juli 2026 keine Fälligkeiten für Unternehmensschulden haben, nachdem es bevorstehende Anleihen zurückgezahlt hat.
- Extended weighted average debt maturity from 2.2 to 3.5 years, improving financial stability
- Secured $783 million in new capital at record-low spreads
- Achieved lowest-ever spread rates (SOFR + 2.25%) on Term Loan B facilities
- Increased revolving credit facility by $50 million to $200 million
- No corporate debt maturities until July 2026 after upcoming repayments
- None.
Insights
The capital markets transactions represent a significant strengthening of STWD's financial position. The
The extension of weighted average debt maturity from 2.2 to 3.5 years provides enhanced financial flexibility and reduced refinancing risk. The timing is strategic, as the company faces no corporate debt maturities until July 2026, creating a stable runway for operations. The increased revolving credit facility and additional capital position STWD well for anticipated market opportunities in 2025.
The successful debt restructuring comes at a important time in the commercial real estate market cycle. STWD's ability to secure favorable terms amid market uncertainty demonstrates its strong market reputation and robust business model. The
The "thawing" in CRE capital markets mentioned by management could present unique opportunities for STWD's low-leverage strategy. With a
- Repriced
- Raised
- Extended Weighted Average Corporate Debt Maturity from 2.2 Years to 3.5 Years –
- On December 17th, we priced a new issue of
$500 million 6.500% senior unsecured sustainability notes due July 2030, swapped to SOFR +2.55% , our lowest floating-rate spread in six years. - On December 12th, we extended our
$767 million 99.75% of par. With strong demand, we upsized this transaction by$133 million $900 million 0.73% to SOFR +2.25% , the lowest spread in Starwood Property Trust's history. - On December 12th, we amended our revolving credit facility, increasing the size by
$50 million $200 million - On December 5th, we repriced our
$590 million $100 million $690 million 0.50% to SOFR +2.25% , also the lowest spread in Starwood Property Trust's history. - Combined, these transactions extended our weighted average remaining corporate debt maturity from 2.2 years to 3.5 years, significantly lowered our borrowing costs and created
$783 million - Upon repaying our December 2024 and March 2025 unsecured notes, we will have no corporate debt maturities until July 2026.
"We have seen a thawing in CRE capital markets that has created increased lending opportunities for our low-leverage, diversified business. With a robust pipeline of Q4 and Q1 investments, this incremental low-cost term capital positions us to continue to increase our investing pace in 2025," stated Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Property Trust.
"With our heightened level of investment activity, we are pleased to have had the opportunity to again increase our liquidity with these transactions, while reducing our cost of funds and extending the tenor of our debt. These transactions once again demonstrate STWD's unique access to capital at best-in-class rates, and we are pleased to have once again fortified and optimized the right side of our balance sheet as we head into what we expect to be a busy 2025," stated Jeffrey DiModica, President, Starwood Property Trust.
These transactions are subject to ordinary closing conditions.
About Starwood Property Trust, Inc.
Starwood Property Trust (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 September 30, 2024, the Company has successfully deployed over
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. Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words "believe," "expect," "anticipate" and other similar expressions. Although Starwood Property Trust, Inc. 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, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.
In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein will in fact occur. Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise.
Additional information can be found on the Company's website at www.starwoodpropertytrust.com.
Contact:
Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com
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SOURCE Starwood Property Trust, Inc.
FAQ
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