Colony Financial, Inc. (CLNY: Quote) said Friday that it has priced a public offering of 10 million shares of common stock.
The company has also granted to the underwriters an option to purchase up to an additional 1.5 million shares.
The offering is is expected to close on or about January 16. On January 10, 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 company plans 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., 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 plans 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.
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by RTT Staff Writer
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