CHEVY CHASE, Md., July 27 /PRNewswire-FirstCall/ -- CapitalSource Inc. (NYSE: CSE) today announced that it has reduced the balance of its syndicated bank facility (the "Facility") by $300 million, which satisfies the precondition for extending the Facility to March 31, 2012. The Company used proceeds from its recent debt and equity offerings to reduce the Facility commitment amount to $600 million.
"The closing of our notes offering and extension of the last of our credit facilities are important transactions for CapitalSource for several reasons," commented John K. Delaney, CapitalSource Chairman and CEO.
- "First, we are proud to be a continuing source of liquidity and financing solutions for small and mid-size businesses looking to grow or reposition their balance sheets. With the extension of the syndicated facility, we believe our loan book is largely match funded and the Company is well-positioned to get to the other side of this credit crisis with a greater market share.
- Second, in an environment where addressing problem loans is a high priority, the Company now enjoys significantly greater flexibility in its approach to credit issues. Specifically, we can look to manage or control assets and companies to maximize long-term recoveries in those situations where borrowers are not in a position to offer constructive solutions.
- Finally, our ability to navigate the current economic crisis without the benefit of short or long term government aid, though costly and not an inconsequential task, underscores the soundness of the Company's balance sheet strategy which has emphasized high capital levels and deposit-based funding."
About CapitalSource
CapitalSource Inc. (NYSE: CSE) is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. As of March 31, 2009, CapitalSource had total commercial assets of $11.4 billion and $4.7 billion in deposits. The Company is headquartered in Chevy Chase, MD.
Forward Looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations and statements about our liquidity, capital, credit and operations, our ability to operate through the current economic crisis and its impact on us and our borrowers and our and their businesses and our credit performance, all of which are subject to numerous assumptions, risks, and uncertainties. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "assume," "intend," "believe," "expect," "estimate," "plan," "goal," "will," "outlook," "continue," "look forward," "should," and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, performance, or achievements to differ materially from those that are anticipated. Actual results, performance, actions or achievements could differ materially from those contained or implied by such statements for a variety of factors, including without limitation, those described in the Company's 2008 Annual Report on Form 10-K for the year ended December 31, 2008 and documents subsequently filed by the Company with the Securities and Exchange Commission. All forward-looking statements included in this release are based on information available at the time of the release. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE CapitalSource Inc.
