Starwood Prices $733M Offering

Starwood Property Trust Inc. has priced a 26.5 million share offering of its common stock for gross proceeds of $732.5 million. That will increase to $832 million if a 3.975 million share overallotment option is exercised.

Starwood plans to use the net proceeds to originate and purchase commercial mortgage loan and other target assets and investments. Depending on the timing, proceeds can also be applied to help fund Starwood’s purchase of LNR Property LLC, a manager of distressed commercial real estate loans.

A pro forma calculation shows the offering priced at $27.64 per share. On Thursday, the stock closed at $27.16 per share, down $1.06.

Separately, MFA Financial Inc. priced a 7 million offering of 7.5% Series B Cumulative Preferred Stock to provide gross proceeds of $175 million.

Underwriters have an overallotment option for an additional 1.05 million shares.

Net proceeds will be used for, among other things, to redeem all or part of the outstanding 8.5% Series A Cumulative Redeemable Preferred Stock and to buy mortgage-backed securities.