Starwood Property Trust announced that the company closed STWD 2019-FL1, a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation ( the “CRE CLO”) which is the largest CRE CLO issued post crisis.
The CRE CLO accretively 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 features a two-year reinvestment period.
“We are excited to have closed our inaugural CRE CLO transaction, which we believe is most issuer-friendly structure with the lowest cost of funds and one of the highest advance rate to-date in our sector. 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,” commented Jeffrey DiModica, President of Starwood Property Trust.
Wells Fargo Securities, LLC acted as sole structuring agent. Wells Fargo Securities, LLC, BofA Securities, Inc. and Citigroup Global Markets Inc. acted as co-lead managers and joint bookrunners. Capital One Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC acted as co-managers.
Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors.