The refinancing extends STWD's maturity profile but at a meaningfully higher coupon (6.125% vs 3.625%), increasing annual interest expense. Monitor upcoming quarterly earnings for FFO coverage of the higher interest burden and any updates on eligible green/social project allocation.
Price Chart
Executive Summary
Starwood Property Trust issued $600M of 6.125% senior unsecured notes due 2031 in a private placement. Net proceeds will be used to redeem its $400M of 3.625% senior notes due 2026 and for general corporate purposes, including repaying repurchase facility borrowings. The offering extends the company's debt maturity profile at a higher coupon.
Key Financial Metrics
Key Facts
- Issued $600M of 6.125% senior notes due June 1, 2031
- Priced May 11, 2026 and closed May 26, 2026
- Proceeds to redeem $400M of 3.625% senior notes due 2026 and for general corporate purposes
- Notes are senior unsecured obligations ranking pari passu with existing senior unsecured debt
- Indenture includes covenants limiting additional indebtedness, requiring Total Unencumbered Assets >= 120% of Unsecured Indebtedness, and change-of-control put at 101%
- Make-whole redemption before Dec 1, 2030; par call thereafter; equity clawback up to 40% at 106.125% before June 1, 2029
Financial Impact
Refinances $400M of 3.625% notes due 2026 with $600M of 6.125% notes due 2031 — annual interest cost increase of ~$10M on the refinanced portion, plus $200M of additional debt for general corporate purposes.
Risk Factors
- Annual interest expense will increase by approximately $10M on the $400M refinanced portion
- Covenant requiring Total Unencumbered Assets >= 120% of Unsecured Indebtedness limits future secured debt incurrence
- Higher leverage from incremental $200M debt unless fully offset by repayments under repurchase facilities
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-066308 |
| Document: tm2615544d1_8k.htm | 0001104659-26-066308 |
| Document: 0001104659-26-066308-index-headers.html | 0001104659-26-066308 |
| Document: 0001104659-26-066308-index.html | 0001104659-26-066308 |
| Document: 0001104659-26-066308.txt | 0001104659-26-066308 |
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Oct 21, 2026 5d ago | Institutional Cluster | $12.58 $12.58 | · 0.00% | ▲ +0.52% | $12.44 (−1.15%) |
Sep 17, 2026 5w ago | Press Release | $14.94 $15.00 | ▲ +0.40% | ▼ −1.15% | $12.44 (−16.77%) |
Aug 12, 2026 10w ago | 8-K | $16.35 $16.30 | ▼ −0.31% | ▼ −0.11% | $12.44 (−23.94%) |
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Jul 23, 2026 13w ago | Press Release | $16.33 $16.52 | ▲ +1.16% | ▲ +1.06% | $12.44 (−23.85%) |
May 26, 2026 21w ago | 8-K | $17.31 $17.09 | ▼ −1.27% | ▼ −1.82% | $12.44 (−28.16%) |
May 11, 2026 24w ago | 8-K | $17.23 $17.22 | ▼ −0.06% | ▲ +0.08% | $12.44 (−27.83%) |
May 8, 2026 24w ago | 8-K | $17.75 $17.23 | ▼ −2.93% | ▼ −3.16% | $12.44 (−29.94%) |
Mar 13, 2026 32w ago | DEFA14A | $17.05 $17.30 | ▲ +1.48% | ▲ +1.21% | $12.44 (−27.05%) |
Feb 25, 2026 34w ago | 8-K | $17.23 $17.60 | ▲ +2.14% | ▲ +2.69% | $12.44 (−27.83%) |
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