Starwood Property Trust to Expand Loan Facilities and Commence Senior Notes Offering

Starwood Property Trust, Inc. has revealed plans to enhance its loan facilities through significant amendments while simultaneously initiating a private offering of unsecured senior notes due in 2030.

In the Form 8-K filed with the U.S. Securities and Exchange Commission on December 17, 2024, it was disclosed that Starwood Property Trust intends to amend its term loan agreements with Morgan Stanley Senior Funding, Inc. and JPMorgan Chase Bank, N.A. These amendments are expected to increase the total loan facilities by $233.2 million collectively. Furthermore, the company anticipates refinancing existing debt at more favorable terms, including reductions in annual interest rates and maturity date extensions.

The anticipated amendments are contingent upon the completion of documentation and standard closing conditions. While these adjustments are projected to materialize, there is no absolute certainty that they will transpire as detailed in the filing.

Following the impending amendments to its loan agreements, Starwood Property Trust plans to venture into an amendment for its revolving credit facility agreement with JPMorgan Chase Bank, N.A. This particular iteration is geared towards enlarging the revolving credit facility by $50 million and extending the maturity date to January 2030.

Simultaneously, the company disclosed the kickoff of a private offering for $400 million aggregate principal amount of unsecured senior notes due in 2030. Net proceeds from this offering will be allocated to sustainable and social projects, with any surplus funds slated for the repayment of existing debts.

The senior notes offering will target qualified institutional buyers and non-U.S. persons, adhering to specific regulations under the Securities Act. These securities are not initially registered under the Securities Act or state securities laws and will thus, not be available for sale within the United States without requisite registration or exemption.

This news arrives as Starwood Property Trust strategically evaluates its financial portfolio to optimize capital allocation and maintain financial sustainability.

The company’s press release attached to the filing outlines further details regarding the private offering and the allocation of proceeds towards sustainable initiatives. Investors are urged to pay attention to forthcoming announcements to gain a comprehensive understanding of Starwood Property Trust’s financial undertakings.

Please note that the information contained in this report is for disclosure purposes and does not equate to an offer for securities or solicitation for their purchase.

The full list of exhibits and additional information related to the current report can be reviewed in detail in the original Form 8-K submission.

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.

Starwood Property Trust Company Profile

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.