Colony Financial, Inc. (the "Company") (NYSE: CLNY) today announced the closing of an underwritten public offering of 8.50% Series A Cumulative Perpetual Preferred Stock with liquidation preference of $25 per share.
In connection with the offering, the underwriters partially exercised their over-allotment option to purchase an additional 600,000 shares of the 8.50% Series A Cumulative Perpetual Preferred Stock. Together with the partial exercise of the underwriters’ overallotment option, the Company sold an aggregate of 5,800,000 shares, which generated net proceeds to the Company of approximately $140.1 million, after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company intends to use the proceeds from the offering to repay amounts outstanding under the Company’s revolving credit facility and the balance, if any, for working capital and general corporate purposes.
Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC and UBS Securities LLC acted as joint book-running managers for the offering. RBC Capital Markets, LLC and Stifel, Nicolaus & Company, Incorporated acted as co-managers.
A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. The offering was made only by means of a prospectus supplement and prospectus, which have been filed with the Securities and Exchange Commission. A copy of the prospectus supplement and prospectus related to the offering can be obtained by contacting Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (888) 603-5847 or by email at Barclaysprospectus@broadridge.com; Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department, telephone: 1-800-294-1322 or by e-mail at email@example.com; Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, Attention: Prospectus Department, telephone: (866) 718-1649 or by e-mail at firstname.lastname@example.org; or UBS Securities LLC, 299 Park Avenue, New York, NY 10171, Attention: Prospectus Specialist, telephone: 877-827-6444, ext. 561 3884.This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.