Finance real estate investment trust NorthStar Realty Finance Corp said it has started an underwritten public offering of additional shares of its existing 8.25% Series B preferred stock.
The company aims to grant the underwriters a 30-day option to buy additional shares of Series B preferred stock to cover over-allotments.
Citigroup and UBS Investment Bank are acting as the joint book running managers of the offering.
The company aims to utilize the net proceeds of the offering to make investments through the operating partnership relating to its business, to repurchase or pay its liabilities and for general corporate purposes.
Deutsche Bank Securities and Stifel Nicolaus Weisel are acting as the co-lead managers of the offering.
NorthStar is an internally managed real estate finance company that closed its initial public offering in October 2004. The shares of the company are publicly traded and it also conducts its operations so as to qualify as a real estate investment trust or REIT for federal income tax reasons.
The finance realty investment trust is also involved in asset management and other activities pertaining to real estate finance and real estate.
The main objective of the company is to make real estate-related investments to produce attractive risk-adjusted returns, generate stable cash flows for distributing to its stock holders and build long-term franchise value.
The primary business activities of the company includes origination, structuring, acquisition and managing commercial real estate debt, net lease properties and commercial real estate securities. NorthStar is also engaged in the asset management and activities related to these assets.