LOS ANGELES—Colony Financial has priced 3million shares of 7.5% series B cumulative redeemable perpetualpreferred stock valued at $75 million. Theoffering includes a liquidation preference of $25 per share and a30-day underwriting option to purchase an additional 450,000shares.

Colony Financial expects to earn $72.4 million in proceeds,calculated after underwriting discounts and commissions have beenpaid. It will use these proceeds to repay any outstanding debt fromits secured revolving credit facility. With the underwritersoverallotment option, however, the company could earn as much as$83.3 million. Any additional net proceeds acquired afterrepayments are made will be dedicated toward acquiring its targetassets. Colony Financial is focused on acquiring a distressedassets in secondary markets or new originations. TheREIT recently purchased the Ritz-Carlton, KapaluaResort, a 54-acre oceanfront property in Hawaii. Theproperty was purchased in partnership with WoodridgeCapital Partners LLC.

Barclays, Merrill Lynch,Pierce, Fenner & Smith Inc.,J.P. Morgan and UBS SecuritiesLLC are acting as book-runners for the offering, whileKeefe, Bruyette & Woods is acting asco-manager. Under customary closing conditions, the offering willclose on June 19.