Commercial Mortgage REIT Prices Offering

NorthStar Realty Finance Corp., a commercial mortgage real estate investment trust, has priced its 25 million share common stock public offering at $6.40 per share. The underwriters have an option to purchase up to 3.75 million additional shares.

The Wednesday morning pricing was below the $6.64 the company’s stock closed at on Tuesday. That in turn has driven a massive sell-off of the stock. Its volume was over 16 million shares traded as of midday Wednesday when the three-month average is 1.3 million.

In morning trading, NorthStar has been in a narrow range of $6.34 to $6.42 per share.

This is the company’s second offering this year. Back in February, it sold 15 million shares at $5.55 per share.

Deutsche Bank Securities and UBS Investment Bank are the joint book-running managers of this offering.