Starwood Property Trust Announces Pricing of Private Offering of Sustainability Bonds

Rhea-AI Summary

Starwood Property Trust (NYSE: STWD) priced a private offering of $500 million unsecured senior sustainability notes due 2029 with a 5.875% coupon, issued at 100% of principal. Settlement is expected on July 10, 2026, subject to customary conditions.

The company intends to allocate an amount equal to the net proceeds to eligible green and social projects, and, pending full allocation, may use proceeds and cash on hand to redeem up to all of its $500 million 4.375% notes due 2027 or for general corporate purposes, including repayment of repurchase facility debt.

Positive

• Raises $500 million via unsecured senior notes due 2029
• Coupon and pricing set at 5.875% and 100% of principal
• Intends to allocate net proceeds to eligible green and social projects
• May use proceeds to redeem up to $500 million 4.375% notes due 2027
• Provides flexibility for general corporate purposes and debt repayment

Negative

• New notes carry 5.875% coupon versus 4.375% on 2027 notes
• Notes are unregistered and sold privately under Rule 144A and Regulation S

News Market Reaction – STWD

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+1.26% Session close to close

In the Jun 26 session, STWD gained 1.26%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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MIAMI BEACH, Fla., June 25, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that it has priced its private offering of $500 million aggregate principal amount of its 5.875% unsecured senior notes due 2029 (the "Notes"). The Notes priced at 100.0% of the principal amount and the settlement of the offering is expected to occur on July 10, 2026, subject to customary closing conditions.

The Company intends to allocate an amount equal to the net proceeds from the offering to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Net proceeds allocated to previously incurred costs associated with eligible green and/or social projects will be available for the repayment of indebtedness previously incurred. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the Company intends to use the net proceeds, together with cash on hand, to fund its redemption of up to all of the Company's $500 million outstanding aggregate principal amount of 4.375% Senior Notes due 2027 or for general corporate purposes, including the repayment of outstanding indebtedness under the Company's repurchase facilities.

The Notes were offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the Securities Act or any state securities laws.

This press release does not constitute a notice of redemption for the 4.375% Senior Notes due 2027. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of March 31, 2026, the Company has successfully deployed over $117 billion of capital since inception and manages a portfolio of over $31 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets.

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 and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to the anticipated settlement of the offering and the use of proceeds. 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, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, including those set forth under the captions "Risk Factors", "Business", and "Management's Discussion and Analysis of Financial Condition and Results of Operations"; (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 or in which the Company invests; (iv) availability of mortgage origination and acquisition opportunities acceptable to the Company; (v) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vi) national and local economic and business conditions, including as a result of the impact of public health emergencies; (vii) the occurrence of certain geo-political events (such as wars, terrorist attacks and tensions between states, including global trade disputes related to tariffs) that affect the normal and peaceful course of international relations; (viii) general and local commercial and residential real estate 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 and securities investing activities; (xii) changes in interest rates; and (xiii) the availability of, and costs associated with, sources of liquidity.

Contact:

Starwood Property Trust
Phone: 203-422-7788
Email: investorrelations@stwdreit.com

View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-announces-pricing-of-private-offering-of-sustainability-bonds-302811324.html

SOURCE Starwood Property Trust, Inc.

FAQ

What did Starwood Property Trust (STWD) announce about its sustainability bonds on June 25, 2026?

Starwood Property Trust announced pricing of $500 million 5.875% unsecured senior notes due 2029. According to Starwood Property Trust, the notes are issued at 100% of principal and are structured as sustainability bonds to support eligible green and social projects.

What are the key terms of Starwood Property Trust's $500 million senior notes due 2029 (STWD)?

The new notes have a 5.875% coupon, are unsecured senior obligations, and mature in 2029. According to Starwood Property Trust, they priced at 100% of principal, with settlement expected on July 10, 2026, subject to customary closing conditions.

How will Starwood Property Trust use the net proceeds from its 2029 sustainability bonds (STWD)?

Net proceeds are intended to finance or refinance eligible green and social projects. According to Starwood Property Trust, pending full allocation, proceeds and cash on hand may fund redemption of up to all $500 million 4.375% notes due 2027 or other corporate purposes.

Will Starwood Property Trust redeem its 4.375% senior notes due 2027 with the new 2029 bonds?

Starwood Property Trust intends to use proceeds and cash to redeem up to all of the $500 million 4.375% notes due 2027. According to Starwood Property Trust, this use is pending full allocation to eligible green and social projects and is not a formal redemption notice.

Who can buy Starwood Property Trust's new 5.875% senior notes due 2029 (STWD)?

The notes are offered privately to qualified institutional buyers and certain non-U.S. investors. According to Starwood Property Trust, the securities will not be registered under the Securities Act and cannot be sold publicly in the United States without an applicable exemption.

Are Starwood Property Trust's 2029 sustainability bonds (STWD) registered with the SEC?

No, the notes will not be registered under the Securities Act or state securities laws. According to Starwood Property Trust, they may not be offered or sold in the United States without an effective registration statement or a valid exemption from registration.