Proceeds will be used to repay debt under company's lines of credit
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Dec. 21 - Colony Financial, Inc. settled a private placement of stock on Dec. 20, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $55.69 million.
The company sold 2.75 million common shares at $20.25 per share. The price per share reflects a 1.71% premium to the Dec. 17 closing share price of $19.91.
According to a source familiar with the matter, the company elected to raise the funds via the private placement market because "at the time, market conditions were better.
"The company has been in a position where it had used its available initial public offering funds" and needed to raise more capital, thus the private placement.
Proceeds will be used to repay the company's outstanding balances under its revolving lines of credit and for additional investment and other general corporate purposes.
Colony Financial is a Los Angeles-based real estate company.
| Issuer: | Colony Financial, Inc.
|
| Issue: | Common stock
|
| Amount: | $55,687,500
|
| Shares: | 2.75 million
|
| Price: | $20.25
|
| Warrants: | No
|
| Settlement date: | Dec. 20
|
| Stock symbol: | NYSE: CLNY
|
| Stock price: | $19.91 at close Dec. 20
|
| Market capitalization: | $292.82 million
|
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