Colony Capital greenshoe lifts 7.125% preferreds to $287.5 million

By Toni Weeks

San Luis Obispo, Calif., April 13 – Underwriters for Colony Capital Inc.’s offering of 7.125% series C cumulative redeemable perpetual preferred stock exercised their over-allotment option in full on Friday, lifting the deal to $287.5 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $250 million of the preferreds with the $37.5 million greenshoe on April 8. Price talk was for a coupon of 7.25%, which was adjusted downward to 7.125%.

In all, Colony Capital sold 11.5 million preferreds at $25.00 apiece.

BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets and UBS Securities LLC were the joint bookrunning managers.

The preferreds become redeemable in April 2020 or upon a change of control at par plus accrued dividends.

The Los Angeles-based real estate investment trust will apply to list the new securities on the New York Stock Exchange.

Proceeds will be used to repay amounts outstanding under a secured revolving credit facility.

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