Starwood Property Trust, Inc. Closes Private Offering of $550 Million Senior Notes Due 2031

Strategic Insights -

Starwood Property Trust, Inc., a Maryland corporation, closed its private offering of $550 million aggregate principal amount of its 5.750% unsecured senior notes due 2031 on October 14, 2025. The notes were issued under an indenture dated October 14, 2025, between the Company and The Bank of New York Mellon, as trustee. The notes are senior unsecured obligations of the Company and will mature on January 15, 2031, bearing interest at a rate of 5.750% per year.

Key Takeaways:

  • The Company issued $550 million aggregate principal amount of 5.750% unsecured senior notes due 2031, priced on September 29, 2025.
  • The notes are senior unsecured obligations of the Company and will mature on January 15, 2031, bearing interest at a rate of 5.750% per year.
  • The notes are subject to restrictions on transfer and may only be offered or sold in transactions exempt from or not subject to the registration requirements of the Securities Act and other applicable securities laws.
  • 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.
  • The notes contain covenants, including limits on the ability of the Company and its subsidiaries to incur additional indebtedness, requirements to maintain Total Unencumbered Assets, and certain requirements in order for the Company to merge or consolidate with another person.
  • Upon the occurrence of a Change of Control Triggering Event, the Company will be required to offer to repurchase all of the outstanding Notes at a purchase price equal to 101% of the principal amount thereof plus accrued but unpaid interest.

Statistics:

  • $550 million aggregate principal amount of 5.750% unsecured senior notes due 2031 issued
  • 5.750% annual interest rate on the notes
  • January 15, 2031, maturity date for the notes
  • Semi-annual interest payments on the notes, beginning July 15, 2026
  • Optional redemption of the notes prior to July 15, 2030, at a price equal to 100% of the principal amount plus applicable make-whole premium
  • Maximum 40% redemption of the notes prior to January 15, 2029, at a price equal to 105.750% of the principal amount plus accrued but unpaid interest

Sources:

  • FORM 8-K (Current Report) filed by Starwood Property Trust, Inc. with the U.S. Securities and Exchange Commission on October 14, 2025
  • Indenture dated October 14, 2025, between Starwood Property Trust, Inc. and The Bank of New York Mellon, as trustee