CHEVY CHASE, Md., April 8 /PRNewswire-FirstCall/ -- CapitalSource Inc.
(NYSE: CSE), a specialized commercial finance company based in Chevy Chase,
MD, announced today that it has priced a $1.25 billion term debt
securitization.
The securitization by CapitalSource Commercial Loan Trust 2005-1 is
CapitalSource's seventh term debt securitization since inception and largest
to date. The floating-rate asset-backed notes are backed by a $1.25 billion
diversified pool of commercial loans from the company's portfolio. The
offered notes total $1.12 billion, or 89.75% of the collateral pool, with
CapitalSource retaining a 10.25% interest in the loan pool.
The blended pricing for the 2005-1 offered notes (excluding fees) was
LIBOR plus 26.3 basis points compared to LIBOR plus 33.7 basis points for the
Company's 2004-2 transaction in October 2004.
The amount, ratings and LIBOR spread of the 2005-1 offered notes are:
LIBOR Weighted
Spread Average
Amount Ratings (Basic Life
Class (Millions) (S&P/Moody's/Fitch) Points) (Years)
A-1 $425.0 AAA/AAA/AAA 9 1.16
A-2 $468.8 AAA/AAA/AAA 19 3.00
B $62.5 AA/AA2/AA 28 2.71
C $103.1 NR/A2/A 70 2.76
D $62.5 NR/BAA2/BBB 125 2.83
The closing of the transaction is expected to occur on or about April 14,
2005. Proceeds of the offering will be used to repay borrowings under certain
of the company's credit facilities. As with all prior CapitalSource term debt
securitizations, this financing will be recorded "on-balance sheet."
About CapitalSource
CapitalSource is a specialized commercial finance company offering asset-
based, senior, cash flow and mezzanine financing to small and mid-sized
borrowers through three focused lending businesses: Corporate Finance,
Healthcare and Specialty Finance, and Structured Finance. By offering a broad
array of financial products, we had outstanding more than $6.3 billion in loan
commitments as of December 31, 2004. Headquartered in Chevy Chase, MD, we
have a national network of offices in cities including Atlanta, Boston,
Buffalo, Chicago, Dallas, Los Angeles, Nashville, New York, Philadelphia, San
Francisco and St. Louis. As of December 31, 2004, we had 398 employees.
Middle market lending involves a certain degree of credit risk which we
believe will result in credit losses in our portfolio. For more information,
visit http://www.capitalsource.com or call toll free at (866) 876-8723.
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