Starwood Property Plans Spin-off Of Its Single-family Residential Business

(RTTNews) - Starwood Property Trust (STWD) announced that its Board of Directors has unanimously approved a spin-off of its single-family residential business to its stockholders.

The company said the newly formed real estate investment trust or REIT, to be called Starwood Waypoint Residential Trust, will apply to list on the New York Stock Exchange and trade under the ticker symbol "SWAY."

Upon completion of the spin-off, SWAY will be one of the largest publicly traded investors, owners and operators of U.S. single-family rental homes and non-performing residential mortgage loans in the United States, Starwood said.

Also in connection with the spin-off, Waypoint Real Estate Group, a leading vertically integrated single-family rental operating platform, will merge with SWAY Management. Terms of the transaction were not disclosed.

As part of the spin-off, Starwood Property Trust expects to contribute $100 million in cash to the anticipated unlevered balance sheet of SWAY to fund its growth and operations. In addition, at the time of the spin-off, SWAY also expects to have a fully committed financing line of credit with initial available borrowing capacity in excess of $400 million. Together, the available cash and credit facility will provide SWAY with significant financial capacity to support its growth and operating plans.