Boston, MA 10/03/2014 (wallstreetpr) – According to reports, Starwood Property Trust, Inc. (NYSE:STWD) has decided to come up with an underwritten public offering. It has offered convertible senior notes with aggregate principal amount of $5 billion.
Insights of the offering:
Senior convertible notes have two different maturity dates; one series will mature in three years’ time on October 15, 2017, while the second series will mature on October 15, 2019. As per the terms and conditions of the offering, noted will be convertible during certain periods and only upon certain conditions. In the case of notes getting matured in 2017, date will be any time before April 15, 2017 while, in case of notes getting matured in 2019, date will be April 15, 2019. Once the above-mentioned date is passed, then they will be convertible anytime before the closing on the business on the 2nd schedule day before notes’ maturity. If anyone opts for conversion, then he will be offered shares from company’s common stock or cash amount or combination of both at the time of election. In the case of any over-allotment conditions, authorized underwriters for this transaction will be eligible to offer additional convertible notes with up to $7.5 billion principal amount. Starwood Property Trust, Inc. (NYSE:STWD) has already filed shelf registration statement with Securities Exchange Commission for current offerings. In case new notes are offered, then they will be offered under the same shelf registration statement.
All the other things like conversion rate, interest rate and any other rate will be determined at the time of pricing of the offering. These notes will be considered among senior unsecured obligations of Starwood Property Trust, Inc. (NYSE:STWD) similar to any other senior unsecured debt offering of the company. The entire proceedings of these convertible senior notes will be used for purchasing investments, additional mortgage loans and other assets. STWD may also use the proceedings for general corporate purposes like payment of working capital needs and liabilities.
