By Paul A. Harris
Portland, Ore., Oct. 19 – Starwood Property Trust, Inc. priced a $300 million issue of three-year senior green bullet notes (Ba3/B+) at par to yield 5½% in a Monday drive-by, according to market sources.
The yield printed at the tight end of the 5½% to 5¾% yield talk. Initial guidance was in the mid-to-high 5% area.
J.P. Morgan Securities LLC was on the left of a syndicate of bookrunners that also included Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
The Greenwich, Conn.-based finance company plans to use the proceeds to finance or refinance recently completed or future eligible green and/or social projects, including renewable energy, green buildings and affordable housing.
The issuer, an affiliate of global private investment firm Starwood Capital Group, maintains its core focus on the real estate and infrastructure sectors.
| Issuer: | Starwood Property Trust Inc.
|
| Amount: | $300 million
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| Maturity: | Nov. 1, 2023
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| Securities: | Senior green notes
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| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 532 bps
|
| Call protection: | Non-callable
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| Trade date: | Oct. 19
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| Settlement date: | Nov. 2
|
| Ratings: | Moody's: Ba3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Drive-by
|
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