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Colony Financial, Inc. (the “Company”) (NYSE: CLNY) announced that it has priced a 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 offering is subject to customary closing conditions and is expected to close on or about January 16, 2013. On January 10, 2013, the last reported sales price of the Company’s common stock on the New York Stock Exchange under the symbol “CLNY” was $20.95 per share.
The offering is double its original amount of 5 million shares.
The Company intends to use at least $45.0 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 this 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.
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