Colony Financial: Too Volatile For A 6.5% Yield
Stone Fox Capital
Stone Fox Capital
Colony Financial: Turning Distress Into Income
Fri, Jun. 3, 1:00 PM
Fri, Jun. 3, 7:23 AM
- Upon completion of the all-stock deal, NorthStar Asset Management (NYSE:NSAM) shareholders will own 32.25% of the new Colony NorthStar, Colony Capital (NYSE:CLNY) shareholders will own 33.25%, and NorthStar Realty Finance (NYSE:NRF) shareholders 33.9%.
- NSAM owners, in addition to the regular quarterly dividend, will receive a special cash dividend of $128M.
- Colony's Thomas Barrack will be Executive Chairman of the board, NorthStar's David Hamamoto will be Executive Vice Chairman, and Colony's Richard Saltzman will be CEO.
- The companies expect about $115M in annual cost savings, $80M in cash and $35M in stock-based compensation.
- Terms: NSAM shareholders will own one share of the new company for each share of NSAM they hold; Colony shareholders will receive 1.4663 shares of the new company stock for each share of CLNY they hold; NRF shareholders will receive 1.0996 shares of the new company stock for each share of NRF they hold.
- Closing is expected in Q1 of next year.
- A conference call is set for 10 ET.
- Source: Press Release
Fri, May 6, 4:19 PM
- After a week of sleepy trading, NorthStar Asset Management (NYSE:NSAM) has leapt 16% after hours on news that Colony Capital (NYSE:CLNY) may be close to a deal to acquire it.
- That deal may come by way of partnering with NorthStar Realty Finance (NYSE:NRF), according to chatter.
- NorthStar Asset Management has been under activist pressure this year and formed a special committee in March to examine alternatives including a recombination with NorthStar Realty Finance.
- NSAM was spun off from NRF in 2013.
- Now read NorthStar Realty Finance - NorthStar Realty Europe Spin: Buy, Sell Or Hold After Q4 Earnings? »
Wed, Mar. 2, 9:51 AM
Sep. 21, 2015, 10:18 AM
- Starwood Waypoint (SWAY +9.3%) is sharply higher after announcing its merger with Colony Capital's (CLNY +2.7%) Colony American Homes.
- With M&A (and the quick scale-up and cost savings that come with it) in the air, Silver Bay Realty (SBY +1.7%), American Homes 4 Rent (AMH +2.6%), and American Residential Properties (ARPI +2.2%) are also on the move.
Nov. 5, 2014, 9:48 AM
- The tie-up will combine the management capabilities of Colony Capital with the holdings of Colony Financial (CLNY +5.7%). "You have a real estate asset manager that is capital-light,” says Sterne Agee's Jason Weaver. “People tend to like that business model, that trades at a higher valuation than the normal REIT, which will throw off a consistent dividend and trade at a REIT-style valuation.”
- There may be more coming, says Weaver: “The fact that they are going to become a huge asset manager with $19B in equity and still maintain the REIT status says to me that this isn’t the only step in the puzzle."
- Weaver this morning upgrades the stock to a Buy.
- Previously: Colony Financial agrees in principle to become self-managed
Nov. 5, 2014, 9:16 AM
- Gainers: CRTO +19%. JIVE +17%. YOD +16%. TTPH +12%. IBIO +11%. AEZS +9%. EXEL +8%. CLNY +7%. ANR +7%. ROYT +7%. EOG +6%. PHMD +6%. NICE +6%. VPCO +6%. ATVI +5%. VG +5%. CTSH +5%. WLT +5%. MACK +5%.
- Losers: CHUY -24%. NUS -22%. FEYE -16%. ZU -14%. TRIP -13%. SSYS -8%. MEMP -7%. NG -6%. ANV -6%. ARIA -6%. AWAY -6%.
Jul. 16, 2014, 4:12 PM
- In addition to the 15M shares, the underwriters have an option to buy another 2.25M shares at the offering price.
- CLNY -2.1% AH
Jan. 22, 2014, 5:45 PM
Jan. 3, 2014, 9:51 AM
Feb. 25, 2013, 5:52 PM
Colony Capital, Inc. operates as a real estate investment and finance company. It acquires, originates and manages a portfolio of real estate-related debt instruments. It focuses on acquiring, originating and managing commercial mortgage loans, which may be performing, sub-performing or... More
Industry: REIT - Diversified
Country: United States
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