Starwood Property Trust, Inc. entered into a purchase agreement to acquire energy project finance debt business from GE Energy Financial Services for approximately $2.2 billion.
August 07, 2018
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Starwood Property Trust, Inc. (NYSE:STWD) entered into a purchase agreement to acquire energy project finance debt business from GE Energy Financial Services for approximately $2.2 billion on August 7, 2018. The Project Finance Debt Business consists of a $2.5 billion senior secured project finance loan portfolio of 51 senior loans secured by energy infrastructure real assets, including approximately $400 million of unfunded commitments and a Full-service platform. In connection with the acquisition, on August 7, 2018, Starwood entered into a debt commitment letter for a senior secured term loan facility, a senior secured revolving credit facility, a senior secured delayed draw term loan facility and a senior secured letter of credit facility in an aggregate principal amount of up to $2.1 billion from MUFG, with an initial advance of $1.7 billion, for purposes of funding a portion of the acquisition and Starwood’s ongoing obligations under the acquired project finance loans.
In addition, on August 7, 2018, Starwood entered into a debt commitment letter to provide a senior unsecured bridge facility from Credit Suisse and Citigroup Global Markets Inc., in a principal amount of up to $600 million to provide further financing for the Project Finance Debt Business. As of August 14, 2018, Starwood Property offered $300 million aggregate principal amount of its unsecured senior notes due August 2023 in a private offering, part of which will be used for the payment of a portion of the purchase price for the acquisition of the Energy Project Finance Debt Business. The Notes will be offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and non-U.S. persons pursuant to Regulation S under the Securities Act. The energy project finance debt business will continue to be led by Denise Persau Tait, Global Head of Project Finance Debt Business and consist of 21 full-time employees across loan origination, underwriting, capital markets and asset management.
The completion of the acquisition is subject to the satisfaction of a number of customary conditions and is expected to close in the third quarter of 2018. Starwood anticipates the transaction will be accretive to core earnings. Michael A. Gordon, Richard W. Astle, Irv Rotter, Fayzan Bakhtiar, David Miller , Ivy Jones, Ram Burshtine, Kelly Lazaroff, Audry Casusol and Jennifer Coplan of Sidley Austin LLP acted as legal advisor to Starwood. Paul Hastings LLP acted as legal advisor to Starwood. Citigroup Global Markets Inc. acted as financial advisor and Rory O'Halloran of Shearman & Sterling LLP acted as legal advisor to GE Capital. Arnold & Porter Kaye Scholer LLP acted as legal advisor to GE Energy Financial Services.
Starwood Property Trust, Inc. is a real estate investment trust. The Company's segments include Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing. Commercial and Residential Lending segment is engaged in originating, acquiring, financing and managing commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities, residential mortgage-backed securities and other real estate and real estate-related debt investments in the United States, Europe and Australia. Infrastructure Lending segment is engaged in originating, acquiring, financing and managing infrastructure debt investments. Property segment is engaged primarily in acquiring and managing equity interests in stabilized commercial real estate properties. Investing and Servicing segment includes a servicing business in the United States; an investment business, and a mortgage loan business.
Starwood Property Trust, Inc. entered into a purchase agreement to acquire energy project finance debt business from GE Energy Financial Services for approximately $2.2 billion.
STARWOOD PROPERTY TRUST, INC. 
