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Sector Update: Financial Stocks Still Adding to Losses Late; Colony Financial Gains Following Upsized Convertible-Note Offering

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Financial stocks were finishing near their session lows this afternoon with the NYSE Financial Sector Index sinking about 0.5% and the S&P Financial 100 Index declining over 0.6%.

In company news, Colony Financial ( CLNY ) rose Thursday after the real estate investment and finance company priced an upsized $150 million offering of its 3.875% convertible senior notes due 2021.

CLNY shares were up 1.8% at $22.65 each late in today's session, earlier advancing to an intra-day high of $22.66 a share. The stock has a 52-week range of $19.03 to $23.35 a share, adding 20% in value over the past 12 months.

The deal was increased by 50% in size just before the pricing to accomodate demand. The notes can be converted in CLNY common stock at $24.82 a share anytime up to two days before their January 2021 maturity date.

CLNY plans to use net proceeds from the offering to repay debt owed under its secured revolving credit facility and for potential property acquisitions.

In other sector news,

(+) GS, Agrees to pay $67 mln to settle a lawsuit alleging it colluded with other private equity firms to keep a lid on prices paid for target companies. Bain Capital also settles, leaving KKR ( KKR ), Blackstone ( BX ), Carlyle Group ( CG ) and two other firms as defendants.

(-) ELLO, Announces $23.5 mln private placement of its unsecured non-convertible Series A debentures priced at 29 cents each (NIS 1.01) to classified investors in Israel.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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