GREENWICH, Conn., Dec. 19, 2016 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") announced today that it has closed a new $300 million four-year secured term loan and a new $100 million four-year secured revolving credit facility. The Company also has recently completed debt and equity offerings totaling over $1.1 billion, including an upsized private offering of $700 million of 5% unsecured senior notes due 2021 and a common stock issuance with net proceeds of $448.1 million.
"We are thrilled to have fortified our balance sheet through our recent capital markets activities which have the benefits of increasing our liquidity, extending the tenor of our financings and unencumbering a significant portion of our assets. Importantly, we successfully accessed the unsecured senior debt markets for the first time in our Company's history, highlighting the strength of our credit profile and opening an additional source of financing going forward," stated Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Property Trust. "This additional capital will allow us to continue to invest across our business segments, where we have a robust global pipeline of attractive opportunities. With over $9.3 billion of borrowing capacity, we are well positioned to continue to execute on our strategy of sourcing the best risk-adjusted returning investments while using modest financial leverage, to create stable and growing total returns for our shareholders."
The Company will use a portion of the proceeds from the new term loan, together with proceeds from the recent issuance of unsecured notes, to repay in full the existing term loan, which, as of September 30, 2016, had approximately $653.2 million outstanding. The balance of the proceeds will be used for investments in our target assets, the payment of liabilities and other working capital needs. The Company does not intend to draw on the revolving credit facility immediately.
About Starwood Property Trust, Inc.
Starwood Property Trust, Inc. (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is the largest commercial mortgage real estate investment trust in the United States. The Company's core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. Through its subsidiary LNR Property, LLC, the Company also operates as the largest commercial mortgage special servicer in the United States.
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 and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to the use of proceeds from debt and equity offerings. Although the Company 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: (i) factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016 and September 30, 2016, including those set forth under the captions "Risk Factors" and "Business"; (ii) defaults by borrowers in paying debt service on outstanding indebtedness; (iii) impairment in the value of real estate property securing the Company's loans or in which the Company invests; (iv) availability of mortgage origination and acquisition opportunities acceptable to the Company; (v) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vi) national and local economic and business conditions; (vii) general and local commercial and residential real estate property conditions; (viii) changes in federal government policies; (ix) changes in federal, state and local governmental laws and regulations; (x) increased competition from entities engaged in mortgage lending and securities investing activities; (xi) changes in interest rates; and (xii) the availability of, and costs associated with, sources of liquidity.
Starwood Property Trust
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SOURCE Starwood Property Trust, Inc.