Starwood launches $400 million term loan at SOFR plus 350-375 bps

By Sara Rosenberg

New York, Nov. 1 – Starwood Property Mortgage LLC held a lender call at 11 a.m. ET on Tuesday to launch a $400 million five-year first-lien senior secured sustainability term loan B that is talked at SOFR plus 350 basis points to 375 bps with a 0.5% floor and an original issue discount of 97, according to a market source.

The term loan has 0 bps CSA, 101 soft call protection for six months and amortization of 1% per annum, the source said.

Financial covenants include an 83.333% maximum total debt to total assets ratio and a 2.5x minimum asset coverage ratio.

Morgan Stanley Senior Funding Inc. is the left lead arranger on the deal.

Commitments are due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the company intends to use the net proceeds to repay repurchase facilities.

Starwood Property Mortgage is a commercial mortgage real estate investment trust.

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