Commercial real estate financier ""Starwood Property Trust, Inc."":http://www.starwoodpropertytrust.com sourced $653 million last week that the company says will be used to acquire commercial mortgage debt and other target assets.
[IMAGE] The Greenwich, Connecticut-based REIT [real estate investment trust] closed a $150 million warehouse financing facility with ""Goldman Sachs Mortgage Company"":http://www2.goldmansachs.com/services/financing/lending/commercial-mortgage/index.html that comes due in December 2012. The warehouse facility will finance the acquisition or origination of commercial mortgage loans, according to a statement from the company.
Starwood also secured a $125.2 million asset-based credit agreement with ""Bank of America"":http://www.bankofamerica.com that matures in December 2013 but may be extended for an additional[COLUMN_BREAK]
year. The company says under certain circumstances the amount available under the credit agreement can also be increased to $150 million to purchase additional assets.
The agreement with BofA was fully drawn at closing to finance Starwood's discounted acquisition of a $205 million first mortgage loan secured by substantially all of the assets of a worldwide operator of hotels, resorts and timeshare properties, according to the company. Starwood's expected levered return on the investment is in excess of 12 percent.
Last Thursday, the company also announced the pricing of a public offering of 20 million shares of its common stock at a price of $19.73 per share, for net proceeds of approximately $378 million. The offering is expected to close on December 15.
Starwood said it intends to use the net proceeds received from the offering to purchase additional commercial mortgage loans and other assets targeted in the company's acquisition strategy. A portion of the net proceeds may also be used to repay outstanding debt and for other working capital needs.
In addition to the financing secured by the company last week, Starwood announced in August that it closed a $350 million financing facility with ""Wells Fargo Bank"":http://www.wellsfargo.com, which matures in August 2013 and may be extended for two additional one-year periods through August 2015.