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.
The offering of the shares will be made under the Company's shelf
registration statement, which was filed with and declared effective by
the Securities and Exchange Commission. The offering will be made only
by means of a prospectus supplement and prospectus, which will be 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 Morgan Stanley, Attention: Prospectus Dept, 180
Varick Street, 2nd Floor, New York, New York 10014 or by email at [email protected],
or BofA Merrill Lynch, Attention: Prospectus Department, 222 Broadway,
New York, New York 10038 or by email at [email protected].
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
About Colony Financial, Inc.
Colony Financial, Inc. is a real estate finance and investment company
that is focused on acquiring, originating and managing a diversified
portfolio of real estate-related debt and equity investments, including
single family homes to be rented to tenants, at attractive risk-adjusted
returns. Our investment portfolio and target assets are primarily
composed of interests in: (i) secondary loans acquired at a discount to
par; (ii) new originations; and (iii) equity in single family homes to
be held for investment and rented to tenants. Secondary debt purchases
may include performing, sub-performing or non-performing loans
(including loan-to-own strategies). Colony Financial has elected to be
taxed as a real estate investment trust, or REIT, for U.S. federal
income tax purposes. Colony Financial is a component of the Russell
2000® and the Russell 3000® indices.
This press release may contain forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. In some cases, you can
identify forward-looking statements by the use of forward-looking
terminology such as "may," "will," "should," "expects," "intends,"
"plans," "anticipates," "believes," "estimates," "predicts," or
"potential" or the negative of these words and phrases or similar words
or phrases which are predictions of or indicate future events or trends
and which do not relate solely to historical matters. Forward-looking
statements involve known and unknown risks, uncertainties, assumptions
and contingencies, many of which are beyond the Company's control, that
may cause actual results to differ significantly from those expressed in
any forward-looking statement.
All forward-looking statements reflect the Company's good faith beliefs,
assumptions and expectations, but they are not guarantees of future
performance. Furthermore, the Company disclaims any obligation to
publicly update or revise any forward-looking statement to reflect
changes in underlying assumptions or factors, of new information, data
or methods, future events or other changes. For a further discussion of
these and other factors that could cause the Company's future results to
differ materially from any forward-looking statements, see the section
entitled "Risk Factors" in the Company's Annual Report on Form 10-K for
the year ended December 31, 2011 filed with the Securities and Exchange
Commission on March 9, 2012, the Company's Quarterly Report on Form 10-Q
for the quarter ended March 31, 2012 filed with the SEC on May 8, 2012,
the Company's Quarterly Report on Form 10-Q for the quarter ended June
30, 2012 filed with the SEC on August 9, 2012, the Company's Quarterly
Report on Form 10-Q for the quarter ended September 30, 2012 filed with
the SEC on November 9, 2012, and other risks described in documents
subsequently filed by the Company from time to time with the SEC.
Colony Financial, Inc.
Chief Financial Officer
Owen Blicksilver P.R., Inc.