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Capital Trust, Inc. Announces Comprehensive Debt Restructuring

Stocks in this article: CT

NEW YORK, March 31, 2011 /PRNewswire/ -- Capital Trust, Inc. (NYSE: CT) today announced the comprehensive restructuring of all of the Company's outstanding recourse debt obligations (the "Restructuring").  The Restructuring involved: (i) the contribution of certain of the Company's legacy assets to a newly formed subsidiary of the Company ("CT Legacy REIT"), (ii) the assumption of the Company's legacy repurchase obligations by CT Legacy REIT, and (iii) the extinguishment of the Company's senior credit facility (the "SCF") and junior subordinated notes (the "JSNs"). The Restructuring was financed by a new $83.0 million mezzanine loan to CT Legacy REIT (the "Mezzanine Loan") provided by an affiliate of Five Mile Capital Partners LLC (the "Mezzanine Lender") and the issuance of equity interests in CT Legacy REIT to the former JSN and SCF holders, as well as to an affiliate of the Mezzanine Lender.

Stephen D. Plavin, CEO of Capital Trust commented, "We are pleased to announce the successful restructuring of Capital Trust's legacy liabilities after a great effort by our team and Five Mile as well as by all of the other transaction participants.  The restructuring appropriately recapitalizes the legacy portfolio with all stakeholders retaining an interest in its recovery.  In addition to its ownership interest in and management of the legacy assets, Capital Trust maintains the full capabilities of its platform and is well positioned to continue its capital raising, investing and asset management activities."

CT Legacy REIT

In connection with the Restructuring, the Company transferred substantially all of its directly held interest earning assets to CT Legacy REIT.  The transferred assets include: (i) all of the loans and securities which serve as collateral for the legacy repurchase obligations (except for certain subordinate interests in CT CDO I and II), (ii) the Company's subordinate interests in CT CDO III, and (iii) 100% of CT's previously unencumbered loans and securities (collectively, the "Legacy Assets").  

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