Starwood Property flexes $150 million term loan to Libor plus 325 bps

By Sara Rosenberg

New York, Sept. 27 – Starwood Property Mortgage reduced pricing on its fungible $150 million add-on term loan B (BB-/BBB-) to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

Also, the original issue discount on the add-on term loan was changed to 99.75 from 99.5, the source said.

The add-on term loan still has a 0.75% Libor floor.

In addition, the company is now seeking a repricing of its existing $250 million term loan to Libor plus 325 bps with a 0.75% Libor floor from Libor plus 350 bps with a 0.75% Libor floor, the source continued.

JPMorgan Chase Bank is the lead on the deal.

Proceeds from the add-on term loan will be used to repay repurchase facilities.

Along with the term loan, the company is looking to amend a covenant in its existing credit agreement.

Starwood Property Mortgage is a finance company.

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