Starwood Property Trust Announces Private Offering of Sustainability Bonds

Rhea-AI Summary

Starwood Property Trust (NYSE: STWD) plans a private offering of $600 million unsecured senior notes due 2031, marketed as sustainability bonds under Rule 144A/Reg S. The company intends to allocate an amount equal to net proceeds to eligible green and/or social projects and to refinance existing debt, including $400 million of 3.625% senior notes due 2026.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

• $600 million unsecured senior notes due 2031 to raise long-term capital
• Plans to allocate net proceeds to eligible green and/or social projects
• Intends to redeem or repay $400 million 3.625% Senior Notes due 2026
• Net proceeds may also repay indebtedness under repurchase facilities

Negative

• Private, unregistered notes may limit liquidity for certain debt investors
• Total debt outstanding could increase by up to $600 million before redemptions

News Market Reaction – STWD

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-2.93% News Effect

On the day this news was published, STWD declined 2.93%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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MIAMI BEACH, Fla., May 11, 2026 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that, subject to market and other conditions, it is offering $600 million aggregate principal amount of its unsecured senior notes due 2031 (the "Notes") in a private offering.

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 will be 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 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-private-offering-of-sustainability-bonds-302768146.html

SOURCE Starwood Property Trust, Inc.

FAQ

What sustainability bond offering did Starwood Property Trust (NYSE: STWD) announce on May 11, 2026?

Starwood Property Trust announced a private offering of $600 million unsecured senior notes due 2031. According to Starwood Property Trust, an amount equal to the net proceeds will be allocated to finance or refinance eligible green and/or social projects and related indebtedness.

How will Starwood Property Trust use the net proceeds from its $600 million STWD sustainability bonds?

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

Who can buy the new Starwood Property Trust (STWD) senior notes due 2031?

The new senior notes will be offered only to qualified institutional buyers and certain non-U.S. investors. According to Starwood Property Trust, the notes rely on Rule 144A and Regulation S exemptions and will not be registered under the Securities Act or state securities laws.

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

The $600 million senior notes will not be registered under the Securities Act or state laws. According to Starwood Property Trust, the notes may not be offered or sold in the United States without an effective registration statement or valid registration exemption.

Does this Starwood Property Trust (STWD) bond offering constitute a redemption notice for the 2026 notes?

The announcement does not constitute a notice of redemption for the 3.625% Senior Notes due 2026. According to Starwood Property Trust, a separate, proper notice would be required before any redemption under applicable securities law procedures.

What debt does Starwood Property Trust plan to refinance with its 2026 sustainability bond proceeds?

Starwood Property Trust plans to redeem or repay $400 million of 3.625% Senior Notes due 2026. According to Starwood Property Trust, net proceeds may also repay indebtedness under its repurchase facilities and other general corporate debt obligations.