- 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 millionJuly 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.
