Colony Financial, Inc. Announces Public Offering Of Common Stock

Colony Financial, Inc. (the "Company") (NYSE: CLNY) today announced that it has priced its public offering of 10,000,000 shares of common stock. The Company also granted to the underwriters an option to purchase up to an additional 1,500,000 shares. The common stock has a public offering price of $19.45 per share and the offering will generate gross proceeds (before the underwriters’ compensation and estimated expenses) of approximately $194.5 million, or approximately $223.7 million if the underwriters exercise their option to purchase additional shares in full. The offering is subject to customary closing conditions and is expected to close on or about December 10, 2012. On December 4, 2012, the last reported sales price of the Company’s common stock on the New York Stock Exchange under the symbol “CLNY” was $20.04 per share.

The Company intends to use at least $150 million of the net proceeds from the offering to make an additional investment in CSFR Operating Partnership, L.P. (“CSFR OP”), an investment vehicle created for the purpose of investing in single-family rental homes in which the Company has an associate general partner interest. Operations are managed by Colony American Homes, LLC, an affiliate of Colony Financial Manager, LLC. The Company expects CSFR OP to use the proceeds contributed to it for the purpose of investing in additional single-family homes. The Company intends to use any additional net proceeds to acquire assets in a manner consistent with its investment strategies and investment guidelines, for working capital and general corporate purposes.

Morgan Stanley and BofA Merrill Lynch are acting as joint book-running managers for the offering, and FBR is acting as lead manager for the offering. The underwriters may offer the shares at prevailing market prices or otherwise from time to time through the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise.

If you liked this article you might like

An Investment Guru's Tactics That Have Stood the Test of Time

Litt Lights Way to 3 REIT Opportunities

How to Find 100-to-1 Moonshots

These 5 Dividend-Paying REITs Are Breaking Out

Mortgage Insurers Catch the Eye of EJF Capital

Mortgage Insurers Catch the Eye of EJF Capital