Colony Starwood Homes closed an offering of 23,033,187 common shares, generating roughly $401.7 million in net proceeds.
The public offering comprised 11.6 million shares sold by the company and 11,433,187 shares sold by the selling stockholders. Colony Starwood also granted the underwriter a 30-day option to buy up to 3,454,978 additional shares.
The company aims to funnel the net proceeds to its operating partnership in exchange for OP units. The OP in turn will use the funds to help fund the planned purchase of a 3,106-unit single-family rental portfolio from Waypoint/GI Venture LLC for roughly $815 million. The remaining funds will be used to repay certain existing debt and for general corporate purposes.
The company noted that it will not receive any proceeds from the share sale by the selling stockholders.
Merrill Lynch Pierce Fenner & Smith Inc. is the sole underwriter.