- Repriced
$1.4 Billion of Corporate Term Loans
–
- Raised
$783 Million of New Corporate Debt at
Record Low Spreads –
- Extended
Weighted Average Corporate Debt Maturity from 2.2 Years to 3.5
Years –
GREENWICH, Conn., Dec. 19,
2024 /PRNewswire/ -- Starwood Property Trust, Inc.
(NYSE: STWD) announced today that it has completed several capital
markets transactions in December
2024:
- 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
July 2026 Term Loan B to January 2030 at 99.75% of par. With strong
demand, we upsized this transaction by $133
million to $900 million and
reduced spread by 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 to $200 million and extending the maturity from
April 2026 to January 2030.
- On December 5th, we repriced our
$590 million Term Loan B due
November 2027 at par. With strong
demand, we upsized this transaction by $100
million to $690 million, and
reduced spread by 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 of new capital to deploy.
- 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 $100 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 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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content:https://www.prnewswire.com/news-releases/starwood-property-trust-completes-capital-markets-transactions-302335785.html
SOURCE Starwood Property Trust, Inc.
