Capital Source buys up lender for $97m.Finance company, CapitalSource lnc. has acquired CIG CIG Ceiling (height above ground level to base of clouds) CIG Conference Intergouvernementale (French: Intergovermental Conference) CIG Conservation Innovation Grants (USDA NRCS) International, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. based specialty lender that provides subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". financing to the for-sale residential real estate development industry. The total transaction value was approximately $97.5 million, which represents a $1.8 million premium to the book value of CIG. CIG will operate as part of CapitalSource's Structured Finance group which encompasses all of the firm's real estate lending activities. CapitalSource will retain substantially all of the employees from CIG. "We have worked closely with CIG for over three years and hold the company's management team, strategic focus and credit expertise in high regard. CIG has a very strong track record across the last decade serving the needs of residential developers" said Michael C. Szwajkowski, Managing Director of the Structured Finance group of CapitalSource. "The acquisition of CIG further demonstrates the commitment of CapitalSource to become the first call, on-balance sheet lender for developers and real estate owners seeking a wide array of financing alternatives ranging from low-leverage senior debt to higher-leverage mezzanine financing Mezzanine Financing A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the ." John K. Delaney, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CapitalSource, added, "We are committed to expanding our real estate lending activities in unique niches within the commercial real estate finance landscape. CIG has established itself as a leader in mezzanine financing for residential development projects and provides CapitalSource with a new and unique product to offer to the market. "We have known the management team of CIG for several years and believe they are very capable." |
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