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NorthStar Realty Finance Corp. Message Board

  • dar200 dar200 Jul 3, 2013 12:36 PM Flag

    Discount DRIP for Income 1

    Registration statement just filed for Income 1 to offer 15 million drip shares at an initial price of 9.50 to shareholders who elect to reinvest dividends. This is a 5% discount to the public offer price. After 12/1/14 a price will be set and drippers get 5% off that price.

    This from sec filing:
    " We are offering a maximum of 15,000,000 shares of our common stock to our existing stockholders pursuant to our DRP. Shares of our common stock issued pursuant to our DRP are initially being offered at $9.50 per share. By December 1, 2014, which is 18 months after the termination of our primary offering, our advisor or another firm we choose for that purpose will establish an estimated value per share of our common stock that we will disclose in a report that we publicly file with the SEC. At that time, shares issued pursuant to our DRP will be priced at 95% of such estimated per share value. "

    That's nice, a discount to drip. This will take a long time to sell out, imo, but every drip means more dollars subject to management fees. Go, Hamo, go! Get more annuity fees.

    I think NRF should offer a 3.5% to 4.5% discount to common drippers. The cost is no more than a secondary and it does not have the market discount associated with a secondary. I'm sure a discount would cause more dripping (I for one would drip for a discount) resulting in more common equity for new deals without the market disruption of a secondary.

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    • Declared effective by sec today. That was fast, but a drip plan is a no-brainer. Even government employees get this right.

      • 1 Reply to dar200
      • It amazes me the stupidity of some people. My wife worked for Pall, Inc. (PLL). They had an ESOP where you could put any amount in (No company match) and get the stock at the lowest price of a 6 month period and another 15% discount. Later changed to lowest at either open or end of the 6 months w 15% discount. And LESS than 1/3 of the employees participated. One guy mad the statement, "They aren't going to hold my money for 6 months and collect all that interest and not pay me anything." MORON!!! You can give a guy a gift horse, but you can't make him accept it!

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