CHEVY CHASE, Md., July 23 /PRNewswire-FirstCall/ -- CapitalSource Inc. announced today its intention to commence an offering, subject to market conditions, of $300 million principal amount of senior subordinated convertible notes due 2037 through an underwritten public offering. The notes will be unsecured and will be fully and unconditionally guaranteed as to payments by CapitalSource Finance LLC, a wholly owned subsidiary of CapitalSource. CapitalSource expects to grant the underwriters a 30-day option to purchase up to an additional $45 million principal amount of the notes.
CapitalSource intends to use the proceeds from the offering to repay indebtedness under its unsecured revolving credit facilities. CapitalSource cannot provide assurance regarding the amount of notes to be issued, if any, until the offering has been completed.
Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. are acting as joint book-running managers for the offering and as representatives of the underwriters.
A copy of the prospectus supplement concerning the offering and related base prospectus contained in CapitalSource's registration statement may be obtained from Citigroup Global Markets, Inc., Brooklyn Army Terminal, 140 58th St, 8th Floor, Brooklyn, New York, 11220 (1-800-831-9146) or from J.P. Morgan, 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, Attention: Prospectus Department.
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Except for historical information, the matters discussed in this release contain forward-looking statements. These statements are based on current expectations or beliefs and are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including without limitation, whether or not CapitalSource will offer the notes or consummate the offering, the anticipated terms of the notes and the offering, and the anticipated use of the proceeds of the offering. For a detailed discussion of these and other cautionary statements, please refer to CapitalSource's most recent filings with the Securities and Exchange Commission. CapitalSource does not undertake any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.
About CapitalSource
CapitalSource is a leading commercial lending, investment and asset management business focused on the middle market. As of March 31, 2007, CapitalSource managed a $18.3 billion portfolio, including $9.5 billion in its commercial lending and investing business, $5.6 billion in its residential mortgage investment business, and $3.0 billion managed on behalf of third parties. Headquartered in Chevy Chase, Maryland, the company has approximately
540 employees in offices across the United States and in Europe. For more information, visit http://www.capitalsource.com/.
