Business & Finance
Business and Finance
Business and Finance
Fri, July 16, 2010 Colony Financial Announces Completion of Three Previously Announced Transactions Totaling $19 Million
LOS ANGELES--([ BUSINESS WIRE ])--Colony Financial, Inc. (NYSE:CLNY) (the aCompanya), a real estate finance and investment company, today announced the completion of its participation in three previously announced transactions. The Companya™s equity participation in the three investments totaled $19 million.
"Along with our two other closings, these three new investments demonstrate the diversity and depth of the Companya™s pipeline and the advantages of our affiliation with the global Colony organization."
The Company and investment vehicles managed by Colony Capital, LLC, a private, international investment firm (collectively, aColonya), participated in the consummation of their second structured transaction with the Federal Deposit Insurance Corporation (aFDICa). The Companya™s investment is approximately $10 million. The transaction includes approximately 1,660 loans, with an aggregate unpaid principal balance of approximately $1.85 billion, consisting of substantially all commercial real estate loans. Barclays Capital served as advisor to the FDIC on the sale to Colony of a 40% managing member equity interest in a newly formed limited liability company (the aLLCa) created to hold the acquired loans, with the FDIC retaining the remaining 60% equity interest. The portfolio was effectively acquired at approximately 59% of the unpaid principal balance of the loans, with an aggregate cash contribution by Colony of approximately $218.2 million (net of working capital and transaction costs) for its 40% equity interest. The FDIC offered 1:1 leverage financing and has agreed to guarantee Purchase Money Notes issued by the LLC in the original principal amount of $563 million, inclusive of a capitalized guarantee fee.
The Company also announced the completion of two previously announced investments. It completed an approximately $5.3 million investment in a portfolio of primarily first mortgage non-performing commercial real estate mortgage loans in Germany, at a purchase price of approximately 36% of the unpaid principal balance, in partnership with other investment vehicles managed by Colony Capital, LLC. The Companya™s pro rata share of this investment is approximately 10.6%. The Company also completed the secondary purchase of a participation interest in a Hilton mezzanine loan for $3.3 million, consummated and owned solely by the Company.
aThe Company, through its relationship with Colony, is again pleased to be partnering with the FDIC on a second joint transaction this year,a said Richard Saltzman, Chief Executive Officer of the Company. aAlong with our two other closings, these three new investments demonstrate the diversity and depth of the Companya™s pipeline and the advantages of our affiliation with the global Colony organization.a
The completion of the three transactions brings total invested and committed capital to $256 million, or 93% of the proceeds from the Companya™s initial public offering and concurrent private placement.
About Colony Financial, Inc.
Colony Financial is a real estate finance and investment company that is focused primarily on acquiring and originating commercial real estate loans and real estate-related debt at attractive risk-adjusted returns. Secondary debt purchases may include performing, sub-performing or non-performing loans (including loan-to-own strategies). Colony Financial intends to elect and qualify to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes. Colony Financial is a component of the Russell 2000® and the Russell 3000© indices. For more information, visit[ www.colonyfinancial.com ].
Forward-Looking Statements of Colony Financial, Inc.
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 Colony Financial's control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. Statements regarding the following subjects, among others, may be forward-looking: the use of proceeds of Colony Financial's initial public offering; and Colony Financial's ability to maintain its qualification as a REIT for U.S. federal income tax purposes.
All forward-looking statements reflect Colony Financial's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, Colony Financial 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 Colony Financial's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in Colony Financial's final prospectus relating to Colony Financial's initial public offering filed with the Securities and Exchange Commission on September 24, 2009, and other risks described in documents subsequently filed by Colony Financial from time to time with the Securities and Exchange Commission.
