Starwood Property Trust (NYSE:STWD) Closes $500 Million Senior Notes Offering Due 2030

On December 27, 2024, Starwood Property Trust, Inc. successfully completed a private offering of $500 million aggregate principal amount of its 6.500% unsecured senior notes due in 2030. The offering, which priced on December 17, 2024, involved an issuance under an indenture with The Bank of New York Mellon serving as the trustee. These notes were offered to qualified institutional buyers under Rule 144A and to non-U.S. persons in accordance with Regulation S under the Securities Act of 1933.

The company plans to allocate the net proceeds from the offering towards financing or refinancing recent or future eligible green and/or social projects. Until the full allocation to such projects, the net proceeds will be used to repay existing debts, including the $400 million outstanding aggregate principal amount of 3.750% Senior Notes due in 2024, and for general corporate purposes, such as repaying outstanding debts under secured financing agreements.

The senior unsecured notes will mature on July 1, 2030, carrying an annual interest rate of 6.500%. Interest payments will be made semi-annually on January 1 and July 1, starting from July 1, 2025, to holders of records as of December 15 and June 15, respectively.

The notes are structured as senior unsecured obligations, ranking pari passu with the company’s existing and future senior unsecured debts. They are effectively subordinated to secured debts and guarantees but are senior to any future subordinated debts and guarantees of the company. The indenture includes provisions for guarantors and covenants, such as limitations on additional indebtedness and maintenance of certain asset levels.

Prior to January 1, 2030, the company has the option to redeem the notes in full or in part. The notes may also be redeemed using the proceeds from equity offerings, with certain conditions and pricing adjustments. In the event of a Change of Control Triggering Event, the company is obligated to offer to repurchase all outstanding notes at a specified price.

The full details of the indenture and the terms of the notes can be found in the company’s filings with the Securities and Exchange Commission. These filings give a comprehensive overview of the terms and conditions associated with the offering.

This news complements the company’s ongoing financial strategies and aligns with its commitments to green and social initiatives.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Starwood Property Trust’s 8K filing here.

About Starwood Property Trust

Starwood Property Trust, Inc operates as a real estate investment trust (REIT) in the United States and internationally. The company operates through Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing segments. The Commercial and Residential Lending segment originates, acquires, finances, and manages commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), and residential mortgage-backed securities, as well as other real estate and real estate-related debt investments, include distressed or non-performing loans.