Starwood Property Trust Floats New Stock Issue
Starwood Property Trust is making a fresh attempt to bolster its capital foundation. The real estate investment trust is floating a 25 million share-strong offering of its common stock. The company estimates it will take in gross proceeds of $607.5 million from the issue, putting the per-share price at $24.30. The offering's underwriters have also been granted a 30-day purchase option for up to an additional 3.75 million shares.
Starwood said it plans to use the proceeds of the issue mainly for investments. It may also direct some of the monies toward "other general corporate purposes, including, but not limited to, the payment of liabilities and other working capital needs."
The joint book-running managers of the offering are Citigroup, and the Securities units of Deutsche Bank and Wells Fargo. The issue is expected to close on Friday.
At the moment, Starwood has just over 166 million shares outstanding, and its stock trades at $23.99 per share.
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