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Starwood Property Trust Announces Pricing of Convertible Notes

        Starwood Property Trust Announces Pricing of Convertible Notes

PR Newswire

GREENWICH, Conn., Feb. 12, 2013

GREENWICH, Conn., Feb.12, 2013 /PRNewswire/ --Starwood Property Trust, Inc.
(NYSE: STWD) (the "Company") today announced the pricing of an underwritten
public offering of $525,000,000 aggregate principal amount of its 4.55%
Convertible Senior Notes due 2018 (the "Notes") for total gross proceeds of
$525 million. The underwriters have a 30-day option to purchase up to an
additional $75,000,000 aggregate principal amount of Notes from the Company to
cover over-allotments, if any. Settlement of the offering is subject to
customary closing conditions and is expected to occur on February 15, 2013.
All of the Notes will be issued under the Company's currently effective shelf
registration statement filed with the Securities and Exchange Commission. 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 Notes will pay interest semiannually at a rate of 4.55% per annum and will
mature on March 1, 2018. The Notes will have an initial conversion rate of
35.5391 per $1,000 principal amount of the Notes (equivalent to a conversion
price of approximately $28.138 per share of common stock and a conversion
premium of approximately 10% based on the closing share price of $25.58 per
share of the Company's common stock on February 11, 2013). The initial
conversion rate is subject to adjustment upon the occurrence of certain
events, but will not be adjusted for any accrued and unpaid interest. 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 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. are serving 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.
 
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