Starwood lifts loan to $600 million, cuts spread to SOFR plus 325 bps

By Sara Rosenberg

New York, Nov. 3 – Starwood Property Mortgage LLC upsized its five-year first-lien senior secured sustainability term loan B to $600 million from $400 million and reduced pricing to SOFR plus 325 basis points from talk in the range of SOFR plus 350 bps to 375 bps, according to a market source.

The term loan still has 0 bps CSA, a 0.5% floor, an original issue discount of 97, 101 soft call protection for six months and amortization of 1% per annum.

Financial covenants include an 83.333% maximum total debt to total assets ratio and a 2.5x minimum asset coverage ratio.

Morgan Stanley Senior Funding Inc. is the left lead arranger on the deal.

Recommitments were scheduled to be due at 10:30 a.m. ET on Thursday, the source added.

Proceeds will be used to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the company intends to use the net proceeds to repay repurchase facilities.

Starwood Property Mortgage is a commercial mortgage real estate investment trust.

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