Starwood to Float New Stock Issue
Starwood Property Trust will release 26.5 million shares of common stock in an underwritten public flotation. In addition, the company's underwriters will be granted a 30-day purchase option for an additional 3.975 shares of the REIT.
The company didn't specify the pricing of the new issue, nor did it say when the shares would be floated.
Starwood said it plans to use the proceeds of the issue to "originate and purchase additional commercial mortgage loans and other target assets and investments." It added that it might use a portion of the monies to fund some of the purchase price of recent acquisition LNR Property.
The joint book-running managers for the offering are the Securities units of Wells Fargo, Credit Suisse, and Deutsche Bank.
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