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Colony Financial Announces Details of Participation in First Republic Bank Secondary Public Offering

^{Published on 2011-07-13 06:00:45 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Colony Financial, Inc. (the aCompanya) (NYSE: CLNY) today announced that as a result of First Republic Banka™s (NYSE: FRC) successful secondary offering of 13,000,000 shares of common stock, which closed on July 7, 2011, ColFin FRB Investor, LLC (aFRB Investora), a joint venture between the Company and investment funds managed by affiliates of the Companya™s manager, sold 5,000,000 shares of common stock as a participating selling shareholder of First Republic Bank. The Company received net cash proceeds (after the Companya™s pro rata share of underwriting discounts and expenses) of approximately $9.0 million, representing more than two times the Companya™s original acquisition cost of $4.4 million on the Companya™s ratable portion of the shares sold.

The Company expects to recognize a gain from the transaction of approximately $3.8 million in the third quarter of 2011. After giving effect to the disposition of shares as part of First Republic Banka™s secondary public offering, FRB Investor owns a 15.6% interest in First Republic Bank, and the Company owns an approximate 0.9% indirect interest in First Republic Bank through its interest in FRB Investor.

This press release is for informational purposes only and is neither an offer to sell securities nor a solicitation of an offer to buy securities.

About Colony Financial, Inc.

Colony Financial, Inc. 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 has elected 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

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 amay,a awill,a ashould,a aexpects,a aintends,a aplans,a aanticipates,a abelieves,a aestimates,a apredicts,a or apotentiala 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 Companya™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 Companya™s business and investment strategy; performance of the investments; use of available proceeds of the Companya™s follow-on public offering; expected co-investment allocations and related requirements; the Companya™s ability to maintain its qualification as a REIT for U.S. federal income tax purposes; and the Companya™s ability to maintain its exemption from registration under the 1940 Act.

All forward-looking statements reflect the Companya™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 Companya™s future results to differ materially from any forward-looking statements, see the section entitled aRisk Factorsa in the Companya™s Annual Report on Form 10-K for the year ended December 31, 2010 filed with the Securities and Exchange Commission (aSECa) on March 7, 2011, the Companya™s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed with the SEC on May 10, 2011, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.