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Starwood Property Trust, Inc.
(the "Company") today announced that it is offering $450,000,000
aggregate principal amount of its Convertible Senior Notes due 2018 (the
"Notes") in an underwritten public offering. Prior to September 1, 2017, 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
$67,500,000 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 to purchase additional commercial mortgage loans and other
target assets and investments. Depending upon the timing of the closing of
those transactions, the closing of the Company's acquisition of LNR Property
LLC ("LNR"), and the Company's receipt of funds from asset repayments, sales
of assets or other financings, the Company may utilize a portion of the
proceeds to fund a portion of the purchase price of LNR. 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.
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