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CRIIMI MAE REFINANCES PORTION OF BALANCE SHEET TO CAPITALIZE ON LOW INTEREST RATES

 CRIIMI MAE REFINANCES PORTION OF BALANCE SHEET
 TO CAPITALIZE ON LOW INTEREST RATES
 ROCKVILLE, Md., Jan. 6 /PRNewswire/ -- CRI Insured Mortgage Association, Inc. ("CRIIMI MAE") (NYSE: CMM), said today it has successfully completed a refinancing of its $117 million of Guaranteed Secured Notes.
 As a result of the refinancing, completed Dec. 31, 1991, the company said it expects its 1992 business plan to produce shareholder dividends this year ranging from $1.04 to $1.12 per share. Last year's dividends totaled $1.08 per share.
 CRIIMI MAE's chairman, William B. Dockser, said, "The refinancing is designed to accomplish two important goals. First, it reduces CRIIMI MAE's interest expense over the next seven years. Second, it removes the restrictive features that were part of the prior notes and gives the company more flexibility in developing its business plan."
 A key change anticipated for 1992 is that CRIIMI MAE expects recurring income to account for a greater portion of total earnings, increasing from approximately 67 cents per share in 1991 to approximately 72 cents per share in 1992.
 Dockser said the improvement in recurring earnings is expected to result from the current favorable interest rate environment, which allows CRIIMI MAE to invest in insured and securitized assets with a yield that is significantly higher than the company's new, lower cost of borrowing.
 Dockser said, "The refinancing unlocks CRIIMI MAE's balance sheet so that the company can take advantage of today's very favorable opportunities."
 Under the refinancing, CRIIMI MAE repurchased or defeased all of its prior notes, which were guaranteed by Financial Security Assurance, Inc. (FSA), using funds from an $85 million reducing term loan facility provided by Signet Bank and Westpac Banking Corporation. The remaining funds came from a $35 million debt service reserve CRIIMI MAE had funded using principal repayments received on its subsidiary's mortgages.
 The new $85 million financing arrangement provided by Signet and Westpac has four advantages compared to CRIIMI MAE's prior notes:
 -- First, it bears a lower interest rate than the notes.
 -- Second, it enables CRIIMI MAE to more profitably employ the principal it receives when its subsidiary's mortgages repay. The prior notes required CRIIMI MAE to place its subsidiary's mortgage principal repayments into a low-interest bearing escrow account. The new loan has no such restriction.
 -- Third, unlike the notes, the new loan is prepayable in whole or in part at any time.
 -- Finally, the refinancing adds flexibility to the balance sheet by freeing up an additional $60 million of CRIIMI MAE's assets which had previously been pledged to FSA as collateral guaranteeing payment on the notes.
 The effective interest rate CRIIMI MAE will pay on the new, floating-rate LIBOR-based financing is expected to range from 5.5 percent to 7.0 percent during 1992, depending upon interest rate changes. That includes the cost of hedging the borrowing to protect against rapid increases in interest rates. The loan's term ends April 1996.
 CRIIMI MAE is the largest real estate investment trust specializing in federally insured multifamily mortgage investments.
 CRIIMI MAE, with assets at Sept. 30, 1991, of $577 million, is managed by an affiliate of CRI, Inc., the real estate investment firm based in the Washington area.
 -0- 1/6/92
 /CONTACT: James T. Pastore of CRIIMI MAE, 301-231-0323/
 (CMM) CO: CRI Insured Mortgage Association, Inc. ST: Maryland IN: SU:


GK-TS -- NY010 -- 6748 01/06/92 09:01 EST
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Publication:PR Newswire
Date:Jan 6, 1992
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