CapitalSource Reports $500MM Deal

CapitalSource, a Chevy Chase, Md.-based commercial finance firm that also funds real estate and health care properties through its health care finance and structured finance groups, has reported the securitization of $500 million of debt.The proceeds from the offering were used to repay borrowings under some of its credit facilities, the company said. This is the company's second securitization of "term debt" for 2003 and the financing will be recorded on its balance sheet, CapitalSource said. The notes are backed by a $500 million pool of senior and subordinated commercial loans, including loans backed by real estate and originated by the company. The interest rates on the different classes of the offering range from 40 basis points above the London interbank offered rate for the highest-quality loans to LIBOR plus 250 bps for the class D loans. CapitalSource has retained a 13.5% interest in the loan pool.