There is $103 million of loans within the portfolio that will reach maturity over the next 12 months, however this facility will not be used to finance any of those. The facility will mature on May 31, 2013 and carries a 30-day LIBOR interest rate plus 300 basis points. Starwood has also entered into an interest rate swap "which corresponds to the maturities of the loans financed by the facility to effectively fix borrowing costs at 4.155% for the term," according to the company's release.

According to the SEC 8-K filing, the facility "may not be prepaid by SPM Sub-1 prior to the maturity date, subject to certain exceptions including in connection with:

  1. the repayment in full by the underlying borrower of any mortgage loan or B note;
  2. the securitization of one or more of the Purchased Assets;
  3. the failure of a Purchased Asset to qualify as an Eligible Asset (as defined in the Repurchase Agreement);
  4. the payment of the Repurchase Price with respect to a Purchased Asset after receipt of a Margin Call;
  5. the payment of all or a portion of the Repurchase Price of one or more of the Purchased Assets in connection with the cure of a breach of the Debt Yield Test as described below; and
  6. the consummation of a sale by SPM Sub-1 of one or more of the Purchased Assets to a non-affiliated third-party. In addition, SPM Sub-1 may repurchase a Purchased Asset prior to the maturity date in connection with the refinancing of such Purchased Asset by SPM Sub-1."
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