Trust closes CDO.

Capital Trust, Inc. announced the closing of a $337.8 million collateralized debt obligation, the third issuance by the company since July of last year.

The company issued $341.3 million of securities comprised of $337.8 million of fixed rate notes and $3.4 million of preferred shares.

Capital Trust retained the BBB- rated class of the investment grade notes, all of the below investment grade notes and the preferred shares in the CDO issuer. The notes rated BBB and above, totaling $269.6 million, were purchased for proceeds of $272.2 million.

Capital Trust's wholly owned asset management subsidiary, CT Investment Management Co., LLC, is the collateral manager for the CDO.

Collateral for the CDO consists of $341.3 million of vintage, fixed rate conduit, fusion, and large loan subordinate CMBS.

Approximately 53% of the collateral was purchased at closing with the balance coming from Capital Trust's existing CMBS portfolio.

The notes rated BBB and above yield 5.17% and represent a non-mark-to-market, term matched, index matched and non-recourse financing for the company. The non-reinvesting, static pool CDO is rated by Fitch Ratings and Standard & Poor's.

Capital Trust will account for the transaction as a financing and record on its balance sheet all of the collateral as assets and all of the CDO notes sold as liabilities.