By Rebecca Melvin and Angela McDaniels
New York, June 27 - Starwood Property Trust Inc. priced a $400 million issue of 5.5-year convertible senior notes after the market close with a 4% yield and a 10% initial conversion premium., according to a company news release.
The registered, off-the-shelf deal has a $60 million greenshoe.
BofA Merrill Lynch, Barclays and Goldman Sachs & Co. were the joint bookrunning managers. There were no co-managers.
The 5.5-year bullet has no calls or puts.
Prior to July 15, 2018, the notes are convertible only under certain circumstances and during certain periods.
Conversions can be settled in cash, shares or a combination of cash and shares at the company's option.
Proceeds will be used to originate and purchase additional commercial mortgage loans and other target assets and investments. The company may also use a portion of the proceeds for other general corporate purposes, including repayment of liabilities and working capital.
Starwood has an existing $600 million 4.55% convertible that it priced in mid-February.
The Greenwich, Conn.-based company is a mortgage loan investor.
| Issuer: | Starwood Property Trust, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $400 million
|
| Greenshoe: | $60 million
|
| Maturity: | Jan. 15, 2019
|
| Bookrunners: | BofA Merrill Lynch, Barclays and Goldman Sachs & Co.
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 10%
|
| Conversion price: | $26.32
|
| Conversion ratio: | 37.9896
|
| Call option: | No
|
| Put option: | No
|
| Pricing date: | June 27
|
| Settlement date: | July 3
|
| Distribution: | Registered, off-the-shelf
|
| Stock symbol: | NYSE: STWD
|
| Stock price: | $23.93 at close June 27
|
| Market capitalization: | $3.25 billion
|
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