By Stephanie N. Rotondo
Phoenix, Feb. 12 - Starwood Property Trust Inc. priced $525 million of 4.55% convertible senior notes due March 1, 2018 at par with an initial conversion premium of 10%, the company said in an FWP filed with the Securities and Exchange Commission.
The deal priced within talk that had been set at a yield of 4.15% to 4.65% with a fixed initial conversion premium of 10%.
Deutsche Bank Securities Inc., BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. were the joint bookrunners.
The initial conversion rate is 35.5391 shares per $1,000 of notes, and the initial conversion price is $28.138.
Interest will be payable on the first day of March and September.
Proceeds will be used to originate and purchase additional commercial mortgage loans and other target assets and investments. Depending upon timing, the Greenwich, Conn.-based company might use the funds for its purchase of LNR. The company also could use the proceeds for general corporate purposes, including paying liabilities and working capital.
| Issuer: | Starwood Property Trust Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $525 million
|
| Greenshoe: | $75 million
|
| Maturity: | March 1, 2018
|
| Bookrunners: | Deutsche Bank Securities Inc., BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co.
|
| Co-managers: | Evercore Group LLC and FBR Capital Markets & Co.
|
| Coupon: | 4.55%
|
| Price: | Par
|
| Yield: | 4.55%
|
| Conversion premium: | 10%
|
| Conversion price: | $28.138 per share
|
| Conversion ratio: | 35.5391 shares per $1,000 of notes
|
| Contingent conversion: | 130%
|
| Call: | Non-callable
|
| Net-share settlement: | Cash, stock or a combination, at issuer's option
|
| Pricing date: | Feb. 12
|
| Settlement date: | Feb. 15
|
| Cusip: | 85571BAA3
|
| Stock symbol: | NYSE: STWD
|
| Stock price: | $25.58 as of Feb. 11 close
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
