Starwood Property Trust Announces Pricing of Private Offering of Sustainability Bonds

Rhea-AI Summary

Starwood Property Trust (NYSE: STWD) priced a private offering of $600 million in 6.125% unsecured senior notes due 2031 at 100% of principal, with settlement expected May 26, 2026.

The company intends to allocate an amount equal to the net proceeds to eligible green and/or social projects and, pending allocation, to redeem or repay $400 million of 3.625% Senior Notes due 2026 and for general corporate purposes.

Positive

• $600 million 6.125% senior notes due 2031 raise long-term capital
• Net proceeds earmarked for eligible green and social projects
• Pending allocation, proceeds may redeem $400 million 3.625% notes due 2026
• Flexibility to use funds for general corporate purposes and repurchase facilities repayment

Negative

• New 6.125% coupon is higher than 3.625% notes due 2026
• Potential increase in gross debt until 2026 notes are redeemed or repaid
• Notes are unregistered and sold privately under Rule 144A and Regulation S

News Market Reaction – STWD

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MIAMI BEACH, Fla., May 11, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that it has priced its private offering of $600 million aggregate principal amount of its 6.125% unsecured senior notes due 2031 (the "Notes"). The Notes priced at 100.0% of the principal amount and the settlement of the offering is expected to occur on May 26, 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 to redeem or repay the Company's $400 million outstanding aggregate principal amount of 3.625% Senior Notes due 2026 and 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 3.625% Senior Notes due 2026. 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:

Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: ztanenbaum@starwood.com

View original content:https://www.prnewswire.com/news-releases/starwood-property-trust-announces-pricing-of-private-offering-of-sustainability-bonds-302768803.html

SOURCE Starwood Property Trust, Inc.

FAQ

What did Starwood Property Trust (STWD) announce on May 11, 2026 about sustainability bonds?

Starwood Property Trust announced pricing of a private offering of $600 million 6.125% unsecured senior sustainability notes due 2031. According to Starwood Property Trust, the notes priced at 100% of principal, with settlement expected on May 26, 2026, subject to customary closing conditions.

What are the key terms of Starwood Property Trust’s $600 million STWD sustainability notes due 2031?

The notes are $600 million aggregate principal amount of 6.125% unsecured senior notes due 2031, priced at 100% of principal. According to Starwood Property Trust, the notes are offered privately to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.

How will Starwood Property Trust use the net proceeds from the 2026 STWD sustainability bond offering?

Starwood Property Trust intends to allocate an amount equal to the net proceeds to eligible green and social projects. According to the company, pending full allocation it plans to redeem or repay $400 million of 3.625% Senior Notes due 2026 and fund general corporate purposes.

What makes Starwood Property Trust’s new STWD notes a sustainability bond?

The notes are considered sustainability bonds because Starwood Property Trust plans to allocate an amount equal to the net proceeds to eligible green and social projects. According to the company, proceeds may finance or refinance recently completed or future qualifying projects, including previously incurred eligible costs.

Will Starwood Property Trust’s $600 million STWD sustainability notes be registered with the SEC?

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 an applicable exemption from registration requirements.

Does the new STWD sustainability bond offering immediately redeem the 3.625% Senior Notes due 2026?

The announcement does not constitute a notice of redemption for the 3.625% Senior Notes due 2026. According to Starwood Property Trust, it intends to use net proceeds to redeem or repay those notes, but this communication itself is not a redemption notice.