Colony Financial, Inc. (the "Company") (NYSE: CLNY) today announced its
plans to commence a public offering of $200,000,000 aggregate principal
amount of Convertible Senior Notes due 2021 (the “Notes”). The Company
also plans to grant to the underwriters a 30-day option to purchase up
to an additional $30 million aggregate principal amount of the Notes to
cover over-allotments, if any. The interest rate, conversion rate and
other terms of the Notes will be determined at the time of pricing of
the offering.
The Company intends to use the net proceeds from the offering to repay
amounts outstanding under its secured revolving credit facility, and to
use any remainder of the net proceeds from this offering to acquire its
target assets in a manner consistent with its investment strategies and
investment guidelines and for working capital and general corporate
purposes.
Morgan Stanley, BofA Merrill Lynch, Credit Suisse and Deutsche Bank
Securities will act as the joint book-running managers for this offering.
The offering of the Notes will be made under the Company’s automatically
effective shelf registration statement, which was filed with 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. Before you invest, you
should read the applicable prospectus supplement and prospectus for more
complete information about the Company and the offering. You may obtain
these documents free of charge by visiting the SEC website at www.sec.gov.
Alternatively, you may obtain copies, when available, by contacting
Morgan Stanley at Attention: Prospectus Department, 180 Varick Street,
2nd Floor, New York, NY 10014, BofA Merrill Lynch at 222 Broadway, New
York, NY 10038, Attention: Prospectus Department or by emailing dg.prospectus_requests@baml.com,
Credit Suisse at One Madison Avenue, New York, New York 10010,
Attention: Prospectus Department, by telephone (toll free) at (800)
221-1037 or by e-mailing newyork.prospectus@credit-suisse.com,
or Deutsche Bank Securities at Deutsche Bank Securities Inc., Attention:
Prospectus Group, 60 Wall Street, New York, New York 10005, telephone
(800) 503-4611 or email at prospectus.cpdg@db.com.
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
jurisdiction.
About Colony Financial, Inc.
Colony Financial, Inc. is a real estate investment and finance company
that is focused on acquiring, originating and managing a diversified
portfolio of real estate-related debt and equity investments at
attractive risk-adjusted returns. Our investment portfolio and target
assets are primarily composed of interests in: (i) real estate and real
estate-related debt, including loans acquired at a discount to par in
the secondary market and new originations; and (ii) real estate equity,
including single family homes held as rental investment properties.
Secondary debt purchases may include performing, sub-performing or
non-performing loans (including loan-to-own strategies). The Company has
elected to be taxed as a real estate investment trust, or REIT, for U.S.
federal income tax purposes.
Forward-Looking Statements
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, and
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, 2012 filed with the Securities and Exchange
Commission on March 11, 2013, as amended by Amendment No. 1 to the
Company’s Annual Report on Form 10-K for the year ended December 31,
2012 filed with the Securities and Exchange Commission on March 12,
2013, the Company’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2013 filed with the Securities and Exchange Commission on May
9, 2013, the Company’s Quarterly Report on Form 10-Q for the quarter
ended June 30, 2013 filed with the Securities and Exchange Commission on
August 9, 2013, the Company’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2013 filed with the Securities and Exchange
Commission on November 12, 2013, and other risks described in documents
subsequently filed by the Company from time to time with the SEC.
Copyright Business Wire 2014