Colony Financial, Inc. (the "Company") (NYSE: CLNY) today announced it
has commenced an underwritten public offering of its shares of Series B
Cumulative Redeemable Perpetual Preferred Stock. Barclays, Merrill
Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan and UBS
Investment Bank are acting as joint book-running managers for the
offering. Keefe, Bruyette & Woods, a Stifel Company, is acting as
co-manager. The Company expects to grant the underwriters a 30-day
option to purchase up to an additional 15% of the shares of Series B
Preferred Stock initially sold to the public to cover overallotments.
The Company intends to file an application to list the Series B
Preferred Stock on the New York Stock Exchange.
The Company intends to use the 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.
The offering of the Series B Preferred Stock will be made under the
Company’s automatically effective shelf registration statement, which
was filed with the Securities and Exchange Commission (SEC). The
offering will be made only by means of a prospectus supplement and
prospectus, which will be filed with the SEC. 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
Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717, telephone: (888) 603-5847 or by email at Barclaysprospectus@broadridge.com;
Merrill Lynch, Pierce, Fenner & Smith Incorporated at 222 Broadway, New
York, NY 10038, Attention: Prospectus Department or by emailing dg.prospectus_requests@baml.com;
J.P. Morgan, 383 Madison Avenue, New York, New York 10179, Attention
Investment Grade Syndicate Desk, telephone: (212) 834-4533; or UBS
Investment Bank, 299 Park Avenue, New York, New York 10171, Attention
Prospectus Department, telephone: (877) 827-6444, ext. 5613884.
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, 2013 filed with the SEC on February 27,
2014, as amended by Amendment No. 1 to the Company’s Annual Report on
Form 10-K for the year ended December 31, 2013 filed with the SEC on
March 27, 2014, the Company’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2014 filed with the SEC on May 12, 2014 and
other risks described in documents subsequently filed by the Company
from time to time in the future with the SEC.
Copyright Business Wire 2014