NorthStar Realty to Raise $414 Million

NorthStar Realty Finance Corp. in New York expects to raise approximately $414 million through a public offering.

The real estate investment company plans to sell 22.5 million shares of common stock for $18.40 per share. The offering is expected to close on Sept. 9.

NorthStar said in a press release Thursday that it intends to use the proceeds to fund future acquisitions, including upscale hotels or heath care properties. It may also use the funds to pay down its debt.

Additionally, NorthStar will enter into a forward purchase agreement with Deutsche Bank that includes an additional 22.5 million shares.

Deutsche Bank will have to borrow the common stock shares it will sell in its part of the offering. The company will not immediately receive proceeds from the agreement, which it expects to settle in six months.

Deutsche Bank Securities and UBS Investment Bank are acting as the joint book-running managers for the offering.

Next in Origination ►
More in Origination See All »
Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.