August 20, 2019
Starwood Property Trust (NYSE: STWD) announced the closing of STWD 2019-FL1, a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation. The CRE CLO finances interests in 21 loans with an 85.125% initial advance rate at a weighted average coupon at issuance of L+1.34%, before transaction costs. The structure also features a two-year reinvestment period. The CLO is the largest of its kind since the end of the 2009 global financial crisis, according to Starwood.
Wells Fargo Securities, LLC acted as sole structuring agent in the closing. Additionally, Wells Fargo Securities, Bank of America Securities and Citigroup Global Markets Inc. acted as co-lead managers and joint bookrunners.
“We are excited to have closed our inaugural CRE CLO transaction, which we believe is [the] most issuer-friendly structure with the lowest cost of funds and one of the highest advance rate to-date in our sector,” said Jeffery DiModica, president of Starwood Property Trust. “This financing, coupled with our recently discussed Term Loan B and A-note sales, further strengthens our balance sheet as we continue to move toward match-funded non-recourse financing structures.”
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