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CRIIMI MAE SELLS 3,162,500 SHARES OF ITS SUBSIDIARY'S STOCK

 ROCKVILLE, Md., Dec. 1 /PRNewswire/ -- CRIIMI MAE Inc. (NYSE: CMM), the largest multifamily mortgage REIT, announced the closing of the sale of 3,162,500 shares of the stock it holds in its subsidiary, CRI Liquidating REIT, Inc. (NYSE: CFR), at a price to the public of $9 per share.
 The sale of stock generated net proceeds for CRIIMI MAE of approximately $26.45 million.
 The lead underwriters of the offering were Merrill Lynch & Co. and Dean Witter Reynolds, Inc.
 As a result of the sale of its subsidiary's stock, CRIIMI MAE now owns approximately 56.5 percent of CRI Liquidating's outstanding shares.
 CRIIMI MAE intends to ?approximately $21.5 million of the net proceeds to purchase government insured mortgages and approximately $4.9 million to buy out the interest rate hedge on approximately $25 million of CRIIMI MAE's corporate debt.
 Eliminating the interest rate hedge is expected to reduce CRIIMI MAE's interest expense. The company had been paying interest expense of approximately $1.48 million per year to maintain the hedge. CRIIMI MAE expects to re-hedge the $25 million of borrowings at a considerably lower cost.
 Though the stock sale generated a tax basis gain for CRIIMI MAE of approximately $4.9 million, the hedge buy-out generated a capital loss of approximately the same amount.
 The current number of CRI Liquidating REIT shares outstanding has not changed as a result of this transaction.
 -0- 12/1/93
 /CONTACT: James T. Pastore, 301-231-0323, or Susan B. Railey, 301-468-3120, both for CRIIMI MAE/
 (CMM CFR)


CO: CRIIMI MAE Inc.; CRI Liquidating REIT, Inc. ST: Maryland IN: FIN SU:

DC-DT -- DC003 -- 9096 12/01/93 09:09 EST
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Publication:PR Newswire
Date:Dec 1, 1993
Words:276
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