Starwood Property enters $125.2 million asset-based loan with BofA

By Jennifer Chiou

New York, Dec. 6 - Starwood Property Trust announced that it closed on a $125.2 million asset-based credit agreement with Bank of America, NA.

The credit agreement - fully drawn at closing - matures in December 2013 and has a one-year extension option, according to a news release.

The loan can be increased to $150 million to purchase additional assets, the release added.

Proceeds were used to fund Starwood's discounted acquisition of a $205 million first-mortgage loan secured by substantially all of the assets of a worldwide operator of hotels, resorts and timeshare properties. The company noted that its expected levered return on the investment is in excess of 12%.

The company also entered into a $150 million warehouse financing facility with Goldman Sachs Mortgage Co., which will be used to finance the acquisition or origination of commercial mortgage loans.

As previously reported, the company closed in August on a $350 million financing facility with Wells Fargo Bank, NA. The facility matures in August 2013.

Based in Greenwich, Conn., the commercial real estate finance company is focused primarily on originating, investing in, financing and managing commercial mortgage loans.

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