The company will offer 45 million shares in the public offering. At least 22.5 million shares in the offering will be subject to a forward sale, and will be sold to Deutsche Bank Securities (DB) . The remaining shares in the offering will be newly issued by NorthStar Realty Finance.
NorthStar Realty Finance plans to use the net proceeds of the offering for general corporate purposes. Those purposes may include funding the equity portion of a $1.8 billion acquisition of two portfolios of "upscale extended stay and premium branded elect service hotels," the repurchase or repayment of liabilities, and other potential acquisitions. The
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TheStreet Ratings team rates NORTHSTAR REALTY FINANCE CP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORTHSTAR REALTY FINANCE CP (NRF) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity."