Colony Financial Prices $75M of Stock

LOS ANGELES—Colony Financial has priced 3 million shares of 7.5% series B cumulative redeemable perpetual preferred stock valued at $75 million. The offering includes a liquidation preference of $25 per share and a 30-day underwriting option to purchase an additional 450,000 shares.

Colony Financial expects to earn $72.4 million in proceeds, calculated after underwriting discounts and commissions have been paid. It will use these proceeds to repay any outstanding debt from its secured revolving credit facility. With the underwriters overallotment option, however, the company could earn as much as $83.3 million. Any additional net proceeds acquired after repayments are made will be dedicated toward acquiring its target assets. Colony Financial is focused on acquiring a distressed assets in secondary markets or new originations. The REIT recently purchased the Ritz-Carlton, Kapalua Resort, a 54-acre oceanfront property in Hawaii. The property was purchased in partnership with Woodridge Capital Partners LLC.