Criimi Mae to Take Hit From CMO Refi

Criimi Mae, Rockville, Md., has refinanced a 7%, $45.7 million collateralized mortgage obligation and says it expects to take a financial statement loss of about $1.1 million in the second quarter as a result.The real estate investment trust expects the refinancing to result in cost savings as a result of a $2 million reduction in associated interest costs. In addition, the refinancing netted about $3.4 million in cash for the commercial mortgage REIT because the CMO was overcollateralized, Criimi Mae said. "As a result of exercising the 'clean-up' call on CMO-1, the early extinguishment of debt will result in a financial statement loss of approximately $1.1 million related to the unamortized discount and deferred financing costs associated with the CMO," Criimi Mae said. The REIT can be found online at http://www.criimimaeinc.com.