Colony Financial Sells 10 Million SharesWednesday, December 5, 2012
Colony Financial Inc. on Wednesday priced a stock offering of 10 million shares at a 2.9 percent discount to the previous day’s closing price.
The Santa Monica real estate investment company priced the offering at $19.45 a share for anticipated gross proceeds of $195 million. The total could increase to more than $223 million if underwriters exercise their option to purchase additional shares.
Colony Financial, which is a publicly held subsidiary of Thomas J. Barrack’s Colony Capital LLC, had 34.4 million shares outstanding before the offering. It said that it plans to use at least $150 million of net proceeds to invest in single-family rental homes.
The offering is expected to close on Monday. Colony shares closed down 56 cents, or less than 3 percent, to $19.48 on the New York Stock Exchange.