Sternlicht's Starwood Property falls after $508 mln equity raise for acquisition

Shares of Starwood Property Trust Inc STWD.N, led by billionaire Barry Sternlicht, down 4% premarket to $20.02 after acquisition-related follow-on

Florida-based commercial mortgage REIT late Weds announced pricing offering of 25.5 mln shares for about $508 mln gross proceeds

Implied price of about $19.92 represents 4.5% discount to stock's last close

STWD intends to use net proceeds to help fund about $2.2 bln buy of net lease platform Fundamental Income Properties from Brookfield Asset Management BAM.TO

BofA and Wells Fargo are jt bookrunners for the stock offering

Co has ~341.6 mln shares outstanding as of Jul 15, per the prospectus, giving it about $7.1 bln market cap through Weds

STWD shares on Weds rose about 1%, putting them up 10% YTD

Avg rating among 7 analysts covering STWD is "buy" and median PT is $22.50, per latest LSEG data