Terms

Series

Series J Cumulative Redeemable Perpetual Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.125%

Rate Type

Fixed

Annual Dividend

$1.78

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

September 22, 2022

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Any Senior Equity Securities; Pari Passu With: Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, Series G Preferred Stock, Series H Preferred Stock, Series I Preferred Stock; Senior To: Class A Common Stock, Class B Common Stock, Performance Common Stock, Any Other Junior Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

11,000,000

Prospectus Summary

Colony NorthStar, Inc. is issuing 11 million shares of its 7.125% Series J Cumulative Redeemable Perpetual Preferred Stock with a $25 liquidation preference. Dividends accrue cumulatively from the date of original issuance at 7.125% per annum ($1.78125 per share annually, or $0.4453125 quarterly), payable on January 15, April 15, July 15, and October 15 each year. The company cannot redeem these shares before September 22, 2022, but may thereafter redeem them at $25 per share plus accrued dividends. This is a perpetual security with no maturity date unless redeemed or converted. Series J Preferred ranks senior to all common stock and junior preferred securities, and pari passu with existing Series B, C, D, E, G, H, and I Preferred Stock. The preferred is subordinate to all debt obligations of Colony NorthStar and its subsidiaries—a structural feature common to holding company preferred issuances. The company had $10.9 billion in consolidated debt outstanding as of June 30, 2017. Additionally, the company may redeem Series J shares prior to the September 2022 date if necessary to preserve REIT qualification through compliance with ownership concentration limits. The effective yield on Series J Preferred is 7.125% annually. As Colony NorthStar is a REIT, dividends to preferred shareholders are not eligible for the 15% or 20% preferential qualified dividend income (QDI) rate available to individuals, nor are they eligible for the corporate dividends-received deduction (DRD). Dividend payments occur quarterly on the 15th of January, April, July, and October; the record date falls within 30 days before each payment date. A dividend stopper applies: the company may not pay dividends on common stock unless full cumulative dividends on Series J and other parity preferred stock have been paid or set aside for payment.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Company may not declare, pay or set aside funds for dividends on common stock (Junior Stock) unless all cumulative dividends on Series J Preferred Stock and any parity preferred stock have been paid or set aside for payment.

Other Preferreds from Digitalbridge Group Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 50 (Average)