Colony Financial, Inc. (the "Company") (NYSE: CLNY) today announced that it has priced, in an underwritten public offering, 4,000,000 additional shares of its 8.50% Series A Cumulative Redeemable Perpetual Preferred Stock (the “Series A Preferred Stock”) with a liquidation preference of $25 per share at a public offering price of $25.6850 per share. In addition, the Company has granted the underwriters a 30-day option to purchase an additional 600,000 shares of the Series A Preferred Stock on the same terms and conditions to cover over-allotments, if any. The offering is a reopening of the Company’s original issuance of Series A Preferred Stock, which closed on March 20, 2012.
Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC and UBS Securities LLC are acting as joint book-running managers for the offering. RBC Capital Markets, LLC and Stifel, Nicolaus & Company, Incorporated are acting as co-managers.
The Company estimates that the net proceeds from the offering, after the underwriting discounts and commissions and estimated offering expenses payable by the Company, will be approximately $99.1 million, or approximately $114.0 million if the underwriters’ overallotment option is exercised in full. The offering is expected to close on or about July 16, 2012, subject to customary closing conditions.
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.A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. The offering will be 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, when available, 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 firstname.lastname@example.org; Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department, telephone: (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.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.