Starwood to Float New Stock Issue

By Eric Volkman – Apr 8, 2013 at 6:00PM

NYSE: STWD

Starwood Property Trust

Market Cap

$6B

Today's Change

(1.13%) $0.22

Current Price

$19.72

Price as of April 23, 2024, 4:00 p.m. ET

The commercial REIT will release 26.5 million new shares on the market.

Starwood Property Trust (STWD 1.13%) will release 26.5 million shares of common stock in an underwritten public flotation. In addition, the company's underwriters will be granted a 30-day purchase option for an additional 3.975 shares of the REIT.

The company didn't specify the pricing of the new issue, nor did it say when the shares would be floated.

Starwood said it plans to use the proceeds of the issue to "originate and purchase additional commercial mortgage loans and other target assets and investments." It added that it might use a portion of the monies to fund some of the purchase price of recent acquisition LNR Property.

The joint book-running managers for the offering are the Securities units of Wells Fargo, Credit Suisse, and Deutsche Bank.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Wells Fargo. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.