NorthStar Realty Forces The Market To Sum Its Parts
Dane Bowler • 47 Comments
Dane Bowler • 47 Comments
Tue, Jun. 7, 3:01 PM
- The combination of NorthStar Realty Finance (NYSE:NRF), NorthStar Asset Management (NYSE:NSAM), and Colony Capital (NYSE:CLNY) is likely to result in an entity with a significantly higher debt-to-adjusted EBITDA ratio than what NSAM currently sports (less than 1.5x), says S&P.
- The current BBB- rating could be cut by one or more notches. For now, S&P will keep things on watch, and resolve the rating once the deal is completed (expected Q1 2017).
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? »
Mon, Jan. 11, 4:12 PM
- Blackstone (NYSE:BX) could have interest in entering the nontraded REIT business, says FBR's Daniel Altscher, and buying NorthStar Asset Management (NYSE:NSAM) could be a way in.
- As for Apollo Global (NYSE:APO), Altscher reminds it tried, but failed to buy AR Capital last year.
- Other possible suitors include traditional asset managers, brokers, sovereign wealth funds, PE funds, and insurance companies.
- NorthStar's "stable income stream" could be used to support a far higher debt level, says Altscher, and the sale price could end up being at a meaningful premium to the current level. The stock gained 11% today, but is off more than 40% Y/Y.
- As for NorthStar Realty Finance (NYSE:NRF) and NorthStar Realty Europe (NYSE:NRE), a sale of either is unlikely, says Altscher.
- Previously: Strategic alternatives at NorthStar Asset Management; stock up 3.3% (Jan. 11)
Apr. 29, 2014, 7:05 AM
Apr. 28, 2014, 11:33 AM
- Fresh off its purchase of Cole Real Estate, American Realty Capital (ARCP -0.3%) is reportedly in talks to acquire NorthStar Realty Finance (NRF +9.8%), though sources remind the discussions are preliminary and a deal may not materialize.
- ARCP has a market cap of about $10B and NorthStar's would be $6.5B at the $20 per share takeover price being bandied about (25% above Friday's close).
- Previously: Takeover chatter for NorthStar Realty
Apr. 28, 2014, 10:09 AM
NorthStar Realty Finance Corp. operates as a diversified commercial real estate company. The company originates, acquires and manages portfolios of commercial real estate debt, commercial real estate securities and net lease properties. It is also engaged in the asset management and other... More
Industry: REIT - Retail
Country: United States