Starwood Property Trust Closes $280M Term Loan Facility

Greenwich, Conn.-based Starwood Property Trust has completed a $280 million term loan facility with Wells Fargo Bank NA. The facility will be used to finance approximately $400 million of the diversified loan portfolio recently purchased from Teachers Insurance and Annuity Association of America. The facility is not being used to finance the approximately $103 million of loans in the portfolio that have a maturity within the next 12 months, Starwood explains.

The facility, which matures on May 31, 2013, carries an interest rate based on 30-day LIBOR plus 300 basis points. The company has entered into an interest-rate swap that corresponds to the maturities of the loans financed by the Facility to effectively fix borrowing costs at 4.155% for the term of the facility.

Additional details on the facility may be found in the company's Form 8-K, filed with the Securities and Exchange Commission.

SOURCE: Starwood Property Trust


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