For the second time in less than a year, Colony Financial Inc., Los Angeles, has raised fresh capital through a stock offering.
The company this week raised $130 million, selling 5.2 million shares of preferred stock at $25 a unit. Colony also granted its underwriters an option to purchase another 780,000 shares if there was additional demand, which could raise an additional $19.5 million, for over allotments.
Colony said it will use the funds to repay any amounts outstanding under its revolving credit facility. The company also may use the proceeds for working capital.
Last spring the company raised $272 million, selling 14 million shares of common stock. Colony used some of that money to buy a 33% interest in a portfolio of 648 performing and nonperforming loans with an unpaid balance of $388 million from another commercial bank.
Colony is a real estate finance and investment company focused primarily on buying and originating commercial real estate loans and real estate-related debt.
