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ROCKVILLE, MD-Commercial Mortgage company Criimi Mae Inc. has made the headlines for the second time this month with the recent announcement that it is in receipt of a $520 million proposal from Orix Capital Markets LLC. Orix has offered to acquire as much as 100% of Criimi Mae’s subordinated commercial mortgage-backed securities or 100% of its outstanding common stock. This news comes about a week after the announcement of the completion of Brascan Real Estate Finance Fund’s and Bear, Stearns & Co. Inc.’s due diligence on their respective investment and financing deals with Criimi Mae.

In this most recently revealed deal, Orix is offering to buy up all of Criimi Mae’s CMBS for $520 million, or all outstanding shares of its common stock for a negotiated fee. According to an Orix filing, the $520-million all-cash transaction would yield $10.18 per share following debt repayment. Criimi Mae officials report that it has put together a special committee of its board members to evaluate the two Orix proposals. Investment banking concern Friedman, Billings, Ramsey and Co. is working with the Criimi Mae committee to help assess Orix’s offers.

As for the Brascan and Bear Stearns deals, they are expected to close in January. Brascan is acquiring 10% of Criimi Mae’s outstanding stock shares and as much as $40 million in debt, and Bear Stearns will provide the company with as much as $300 million in financing. Criimi Mae would see combined proceeds of as much as $353 million, all of which will be applied to retiring the company’s debt that is linked to its April 2001 emergence from Chapter 11.

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