The $238 million that will come from the sale to Deutsche Bankof a $260-million face amount senior interest in its BB+ bonds willpartially fund the paying down of the $293 million recourse debt.In an effort to further lower that debt, Criimi Mae is also relyingon proceeds from the liquidation of hedging instruments and fundsdrawn on a new $42-million repurchase facility.

"This refinancing effectively completes the recapitalization andmatch-funding of the company's core assets, allowing us to move onto our primary focus of growing Criimi Mae's earnings through ourorigination-based plan for new business," explains companypresident and COO Mark R. Jarrell. "Obtaining the $500 millionnon-recourse warehouse facility represents the first step inimplementing that plan and sets the stage for Criimi Mae to beginlending later this year." The size of those newly originated loanswill vary in size from $2.5 million to $35 million.