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Press release from PR Newswire

Starwood Property Trust Announces Public Offering of Convertible Notes

Thursday, June 27, 2013

Starwood Property Trust Announces Public Offering of Convertible Notes

08:41 EDT Thursday, June 27, 2013

GREENWICH, Conn., June 27, 2013 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that it is offering $400,000,000 aggregate principal amount of its Convertible Senior Notes due 2019 (the "Notes") in an underwritten public offering.  Prior to July 15, 2018, the Notes will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the second scheduled trading day prior to maturity. Upon conversion, holders will receive cash, shares of the Company's common stock or a combination thereof at the Company's election. The underwriters will have a 30-day option from the date of the offering to purchase up to an additional $60,000,000 aggregate principal amount of Notes from the Company to cover over-allotments, if any.  All of the Notes will be issued under the Company's currently effective shelf registration statement filed with the Securities and Exchange Commission. The interest rate, conversion rate and other terms of the Notes will be determined at the time of pricing of the offering.  The Notes will be the Company's senior unsecured obligations and will rank equally with all of its present and future senior unsecured debt and senior to any future subordinated debt.

The Company intends to use the net proceeds received from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments.  The Company may also use a portion of the net proceeds for other general corporate purposes, including, but not limited to, the payment of liabilities and other working capital needs.

BofA Merrill Lynch, Barclays and Goldman, Sachs & Co. will serve as joint book-running managers for the offering.

The offering of these securities may be made only by means of a prospectus and a related prospectus supplement, a copy of which may be obtained by contacting: BofA Merrill Lynch, 222 Broadway, New York, New York 10038, Attention: Prospectus Department or e-mail dg.prospectus_requests@baml.com; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY, 11717, Telephone: (888) 603-5847, Email: barclaysprospectus@broadridge.com; or Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526, facsimile: (212) 902-9316, e-mail: prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.

About Starwood Property Trust, Inc.

Starwood Property Trust, Inc. focuses primarily on originating, acquiring, financing and managing commercial mortgage real estate loans and other commercial and residential real estate-related debt investments.  Starwood Property Trust, Inc. is externally managed and advised by SPT Management, LLC, an affiliate of Starwood Capital Group, and has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes. 

Forward-Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from the Company's expectations include (i) factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, including those set forth under the captions "Risk Factors" and "Business," and in the Company's other periodic reports filed with the Securities and Exchange Commission, including the risk factors described in the Company's Current Report on Form 8-K filed on February 11, 2013; (ii) defaults by borrowers in paying debt service on outstanding indebtedness; (iii) impairment in the value of real estate property securing the Company's loans; (iv) availability of mortgage origination and acquisition opportunities acceptable to the Company; (v) the Company's ability to integrate the segments of LNR Property, LLC, a Delaware limited liability company, which were acquired on April 19, 2013, into its business and achieve the benefits that the Company anticipates from this acquisition; (vi) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vii) national and local economic and business conditions; (viii) general and local commercial real estate and residential property conditions; (ix) changes in federal government policies; (x) changes in federal, state and local governmental laws and regulations; (xi) increased competition from entities engaged in mortgage lending; (xii) the timing, terms, structure or completion of the Company's potential spin-off transaction; (xiii) changes in interest rates; and (xiv) the availability of and costs associated with sources of liquidity.

Contact: Investor RelationsPhone:    203-422-7788Email:     investorrelations@stwdreit.com

SOURCE Starwood Property Trust, Inc.

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