Starwood Property Trust Announces Public Offering of Convertible Notes

    Starwood Property Trust Announces Public Offering of Convertible Notes

PR Newswire

GREENWICH, Conn., Feb. 11, 2013

GREENWICH, Conn., Feb. 11, 2013 /PRNewswire/ --Starwood Property Trust, Inc.
(NYSE: STWD) (the "Company") today announced that it is offering $450,000,000
aggregate principal amount of its Convertible Senior Notes due 2018 (the
"Notes") in an underwritten public offering. Prior to September 1, 2017, the
Notes will be convertible only upon certain circumstances and during certain
periods, and thereafter will be convertible at any time prior to the close of
business on the second scheduled trading day prior to maturity. Upon
conversion, holders will receive cash, shares of the Company's common stock or
a combination thereof at the Company's election. The underwriters will have a
30-day option from the date of the offering to purchase up to an additional
$67,500,000 aggregate principal amount of Notes from the Company to cover
over-allotments, if any. All of the Notes will be issued under the Company's
currently effective shelf registration statement filed with the Securities and
Exchange Commission. The interest rate, conversion rate and other terms of
the Notes will be determined at the time of pricing of the offering. The
Notes will be the Company's senior unsecured obligations and will rank equally
with all of its present and future senior unsecured debt and senior to any
future subordinated debt.

The Company intends to use the net proceeds received from the offering to
originate and to purchase additional commercial mortgage loans and other
target assets and investments. Depending upon the timing of the closing of
those transactions, the closing of the Company's acquisition of LNR Property
LLC ("LNR"), and the Company's receipt of funds from asset repayments, sales
of assets or other financings, the Company may utilize a portion of the
proceeds to fund a portion of the purchase price of LNR. The Company may also
use a portion of the net proceeds for other general corporate purposes,
including, but not limited to, the payment of liabilities and other working
capital needs.

Deutsche Bank Securities, BofA Merrill Lynch, Citigroup, Credit Suisse and
Goldman, Sachs & Co. will serve as joint book-running managers for the
offering.

The offering of these securities may be made only by means of a prospectus and
a related prospectus supplement, a copy of which may be obtained by
contacting: Deutsche Bank Securities Inc., Attention: Prospectus Group, 60
Wall Street, New York, New York 10005-2836, by calling (800) 503-4611, or by
emailing prospectus.cpdg@db.com; BofA Merrill Lynch, 222 Broadway, New York,
New York 10038, Attention: Prospectus Department or e-mail
dg.prospectus_requests@baml.com; Citigroup, c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Tel:
800-831-9146 or e-mail batprospectusdept@citi.com; Credit Suisse Securities
(USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New
York 10010, Telephone: (800) 221-1037, Email:
newyork.prospectus@credit-suisse.com; or Goldman, Sachs & Co., Prospectus
Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526,
facsimile: (212) 902-9316, e-mail: prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or a solicitation of
an offer to buy nor shall there be any sale of these securities in any state
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any state.

About Starwood Property Trust, Inc.

Starwood Property Trust, Inc. focuses primarily on originating, investing in,
financing and managing commercial mortgage loans and other commercial and
residential real estate-related debt investments. Starwood Property Trust,
Inc. is externally managed and advised by SPT Management, LLC, an affiliate of
Starwood Capital Group, and has elected to be taxed as a real estate
investment trust for U.S. federal income tax purposes.

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 and Section 21E of the Securities Exchange Act of 1934. 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 Form10-K for the year ended
December31, 2011, including those set forth under the caption "Business," in
the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31,
2012, June 30, 2012 and September 30, 2012, including those set forth under
the caption "Risk Factors" in the Company's Quarterly Report on Form 10-Q for
the quarter ended March 31, 2012, and in the Company's other periodic reports
filed with the Securities and Exchange Commission; (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; (iv) availability
of mortgage origination and acquisition opportunities acceptable to the
Company; (v) the Company's ability to complete the pending acquisition of LNR
and the performance of LNR subsequent to the acquisition; (vi) the Company's
ability to integrate LNR into its business and achieve the benefits that the
Company anticipates from the acquisition of LNR; (vii) potential mismatches in
the timing of asset repayments and the maturity of the associated financing
agreements; (viii) national and local economic and business conditions; (ix)
general and local commercial real estate and residential property conditions;
(x) changes in federal government policies; (xi) changes in federal, state and
local governmental laws and regulations; (xii) increased competition from
entities engaged in mortgage lending; (xiii) changes in interest rates; (xiv)
changes in the exchange rates between the U.S. dollar and the respective
currencies for the Company's non-dollar denominated investments; and (xv) the
availability of and costs associated with sources of liquidity.

Contact: Investor Relations
Phone:203-422-7788
Email:investorrelations@stwdreit.com

SOURCE Starwood Property Trust, Inc.