Greenwich, Conn.-based Starwood Property Trust has completed a $280 million term loan facility with Wells Fargo Bank NA. The facility will be used to finance approximately $400 million of the diversified loan portfolio recently purchased from Teachers Insurance and Annuity Association of America. The facility is not being used to finance the approximately $103 million of loans in the portfolio that have a maturity within the next 12 months, Starwood explains.
The facility, which matures on May 31, 2013, carries an interest rate based on 30-day LIBOR plus 300 basis points. The company has entered into an interest-rate swap that corresponds to the maturities of the loans financed by the Facility to effectively fix borrowing costs at 4.155% for the term of the facility.
Additional details on the facility may be found in the company's Form 8-K, filed with the Securities and Exchange Commission.
SOURCE: Starwood Property Trust