Exhibit 99.1
Colony Capital Announces Proposed Private Offering of
$200 Million of Exchangeable Senior Notes
LOS ANGELES — (BUSINESS WIRE) — July 15, 2020 – Colony Capital, Inc. (“Colony Capital” or the “Company”) (NYSE: CLNY) announced today that its operating subsidiary, Colony Capital Operating Company, LLC (the “Operating Company”), launched an offering (the “Offering”), subject to market conditions and other factors, of $200 million aggregate principal amount of exchangeable senior notes due 2025 in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Operating Company also intends to grant the initial purchasers of the notes an option to purchase up to an additional $30 million aggregate principal amount of notes.
The notes will be the Operating Company’s senior unsecured obligations and will accrue interest payable semiannually in arrears. The notes will be exchangeable at the option of the holders at any time into shares of Colony Capital Class A common stock, $0.01 par value per share (“Colony Capital Class A common stock”), unless the notes have been previously repurchased or redeemed by the Operating Company. The interest rate, exchange rate and other terms of the notes will be determined at the time of pricing of the Offering.
The Operating Company intends to use the net proceeds from the Offering either to repurchase a portion of the Company’s 3.875% Convertible Senior Notes due 2021 (the “2021 Notes”) prior to maturity or to repay the 2021 Notes at maturity, and if any net proceeds remain, for general corporate purposes.
Neither the notes nor the shares of Colony Capital Class A common stock issuable upon exchange of the notes have been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. Accordingly, the notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act).
This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer or sale of, the notes in any jurisdiction in which the offer, solicitation or sale of the notes would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction.
About Colony Capital
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment firm with a heritage of identifying and capitalizing on key secular trends in real estate. The company manages a $50 billion portfolio of real assets on behalf of its shareholders and limited partners, including over $20 billion in digital real estate investments through Digital Colony, its digital infrastructure platform. Colony Capital, structured as a REIT, is headquartered in Los Angeles with key offices in Boca Raton, New York, and London, and has over 350 employees across 20 locations in 12 countries.
