Colony Financial, Inc. Announces Pricing of $75 Million of 7.50% Preferred Stock Offering

LOS ANGELES--()--Colony Financial, Inc. (the “Company”) (NYSE: CLNY) today announced it has priced 3,000,000 shares of 7.50% Series B Cumulative Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”) with a liquidation preference of $25.00 per share. In addition, the Company has granted the underwriters a 30-day option to purchase an additional 450,000 shares of the 7.50% Series B Preferred Stock on the same terms and conditions solely to cover over-allotments, if any. The offering is expected to close on or about June 19, 2014, subject to customary closing conditions. Barclays, Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan and UBS Securities LLC are acting as joint book-running managers for the offering. Keefe, Bruyette & Woods, a Stifel Company, is acting as co-manager.

The Company estimates that the net proceeds from the offering, after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company, will be approximately $72.4 million, or approximately $83.3 million if the underwriters’ over-allotment option is exercised in full. The Company intends to use the proceeds from the offering to repay amounts outstanding under its secured revolving credit facility, and to use any remainder of the net proceeds from this offering to acquire its target assets in a manner consistent with its investment strategies and investment guidelines and for working capital and general corporate purposes.

The offering of the Series B Preferred Stock will be made under the Company’s automatically effective shelf registration statement, which was filed with the Securities and Exchange Commission (SEC). The offering will be made only by means of a prospectus supplement and prospectus, which have been filed with the SEC. Before you invest, you should read the applicable prospectus supplement and prospectus for more complete information about the Company and the offering. You may obtain these documents free of charge by visiting the SEC website at www.sec.gov. Alternatively, you may obtain copies, when available, by contacting Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone (toll free) at (888) 603-5847 or by email at Barclaysprospectus@broadridge.com; Merrill Lynch, Pierce, Fenner & Smith Incorporated, at 222 Broadway, New York, NY 10038, Attention: Prospectus Department or by emailing dg.prospectus_requests@baml.com; J.P. Morgan, 383 Madison Avenue, New York, New York 10179, Attention Investment Grade Syndicate Desk, telephone (collect) at (212) 834-4533; or UBS Securities LLC, 299 Park Avenue, New York, New York 10171, Attention Prospectus Department, telephone (toll free) at (877) 827-6444, ext. 5613884.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Colony Financial, Inc.

Colony Financial, Inc. is a real estate investment and finance company that is focused on acquiring, originating and managing a diversified portfolio of real estate-related debt and equity investments at attractive risk-adjusted returns. Our investment portfolio and target assets are primarily composed of interests in: (i) real estate and real estate-related debt, including loans acquired at a discount to par in the secondary market and new originations; and (ii) real estate equity, including single family homes held as rental investment properties. Secondary debt purchases may include performing, sub-performing or non-performing loans (including loan-to-own strategies). The Company has elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, and may cause actual results to differ significantly from those expressed in any forward-looking statement.

All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on February 27, 2014, as amended by Amendment No. 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 27, 2014, the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 filed with the SEC on May 12, 2014 and other risks described in documents subsequently filed by the Company from time to time in the future with the SEC.

Contacts

Investor Contact:
Colony Financial, Inc.
Darren Tangen
Chief Operating Officer and Chief Financial Officer
310-552-7230
or
Addo Communications, Inc.
Lasse Glassen
310-829-5400
lasseg@addocommunications.com

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Contacts

Investor Contact:
Colony Financial, Inc.
Darren Tangen
Chief Operating Officer and Chief Financial Officer
310-552-7230
or
Addo Communications, Inc.
Lasse Glassen
310-829-5400
lasseg@addocommunications.com