After the bell, shares had toppled 3% to $22.50.
The mortgage real estate investment trust said it will also grant underwriters a 30-day option to purchase up to an additional 3.3 million shares.
Greenwich, Conn.-based Starwood said in a statement that it intends to use net proceeds to "originate and purchase additional commercial mortgage loans and other target assets and investments."
The company may also use a portion for other general corporate purpose such as working capital and payment of liabilities.
Credit Suisse, Bank of America, Barclays Capital, Citigroup and Wells Fargo will act as joint book-running managers.
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TheStreet Ratings team rates STARWOOD PROPERTY TRUST INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARWOOD PROPERTY TRUST INC (STWD) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."