Starwood Property Trust to Offer 17.8 Mln Shares in Public Offering

Starwood Property Trust, a commercial mortgage real estate investment trust, is offering 17.8 million shares of its common stock in an underwritten public offering. Shares fell as much as 4% in extending trading on Monday.

The underwriters will have a 30-day option from the date of the offering to purchase up to an additional 2.7 million shares from the company.

The company seeks to use the net proceeds received from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments.  The company may also use a portion of the net proceeds for other general corporate purposes.