By Paul A. Harris
Portland, Ore., March 13 – Starwood Property Trust, Inc. priced an upsized $600 million issue of five-year sustainability-linked senior bullet notes (Ba3/BB-/BB+) at par to yield 7¼% in a Wednesday drive-by, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of the 7¼% to 7 3/8% revised yield talk. Earlier talk was in the 7½% area. Initial guidance was in the 7¾% area.
J.P. Morgan Securities LLC was the lead.
The Greenwich, Conn.-based real estate- and infrastructure-focused finance company intends to allocate an amount equal to the notes proceeds to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects.
Proceeds allocated to previously incurred costs associated with such projects will become available for debt repayment.
Pending full allocation to eligible projects, the company intends to use the proceeds for general corporate purposes, including the repayment of debt under its repurchase facilities.
| Issuer: | Starwood Property Trust, Inc.
|
| Amount: | $600 million, increased from $400 million
|
| Issue: | Sustainability-linked senior notes
|
| Maturity: | April 1, 2029
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 308 bps
|
| Call protection: | Make-whole call at par plus 50 bps until Oct. 1, 2028, then callable at par
|
| Trade date: | March 13
|
| Settlement date: | March 27
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7¼% to 7 3/8%, revised from 7½% area
|
| Marketing: | Drive-by
|
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