Colony Financial Inc., Los Angeles, has priced a $175 million debt offering at an interest rate of 5% and has granted underwriters an option to buy an additional $25 million of notes to cover overallotments.
The company is a real estate investment trust which purchases and originates debt and equity assets.
The convertible senior notes will mature on April 15, 2023. The first interest payment will be made on Oct. 15 and after that each April 15 and Oct. 15 until they come due.
These notes can be converted into common stocks at the rate of 42.4 shares for $1,000 of principal owed. That works out to a conversion price of $23.60 per share, a 10% premium from Thursday’s closing price of $21.45 per share. At closing on Friday, Colony’s stock price was at $22.14 per share.
In September, the Los Angeles-based REIT did
