ROCKVILLE, MD-It is a big week for Criimi Mae. The commercial mortgage concern has revealed that is will issue non-recourse repurchasable senior interest in its BB+ rated securities to help diminish a $293-million Bear Stearns recourse debt. And the news does not end there. The company has also secured a new $500-million non-recourse warehouse facility that will help get its new program for funding newly originated commercial mortgage loans off the ground; the lending program is part of Criimi Mae’s new business plan.

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

“This refinancing effectively completes the recapitalization and match-funding of the company’s core assets, allowing us to move on to our primary focus of growing Criimi Mae’s earnings through our origination-based plan for new business,” explains company president and COO Mark R. Jarrell. “Obtaining the $500 million non-recourse warehouse facility represents the first step in implementing that plan and sets the stage for Criimi Mae to begin lending later this year.” The size of those newly originated loans will vary in size from $2.5 million to $35 million.

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