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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): March 12, 1998
CRIIMI MAE Inc.
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(Exact name of registrant as specified in its charter)
Maryland 1-10360 52-1622022
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) (Identification No.)
11200 Rockville Pike, Rockville, Maryland 20852
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(Address of principal executive office) (Zip code)
Registrant's telephone number including area code: (301) 816-2300
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(Former name or former address, if changed since last report)
Exhibit Index on Page 4
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Item 5. Other Events.
CRIIMI MAE Inc. (the "Company") issued a press release on March 12, 1998
announcing its plans to expand its "No-Lock" Commercial Mortgage Conduit Program
and agreements to acquire subordinated commercial mortgage-backed securities
("CMBS") totaling approximately $310 million from two CMBS transactions. A copy
of the press release is attached hereto as Exhibit 99.1, and is incorporated in
its entirety by reference in response to this Item 5.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
c) Exhibits
99.1 Press Release
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CRIIMI MAE Inc.
Date: March 12, 1998 By: /s/ H. William Willoughby
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H. William Willoughby
President
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INDEX TO EXHIBITS
FORM 8-K
Page
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99.1 Press Release
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CRIIMI MAE EXPANDS "NO-LOCK" COMMERCIAL MORTGAGE CONDUIT PROGRAM;
ALSO ANNOUNCES AGREEMENTS TO ACQUIRE SECURITIES FROM TWO CMBS TRANSACTIONS,
INCLUDING LARGEST CMBS OFFERING TO DATE
Rockville, MD, March 12, 1998-(NYSE-CMM)-Due the popularity of CRIIMI MAE Inc.'s
innovative "No-Lock" commercial mortgage conduit program, the Rockville,
Md.-based full-service commercial mortgage company intends to expand the product
line to include larger "No-Lock" loans, increase the size of securities
offerings backed by "No-Lock" originations and open additional lending offices
in Texas and Chicago.
CRIIMI MAE chairman William B. Dockser said, "Borrowers have responded very
favorably to the "No-Lock" innovation. There is demand for us to extend the
`No-Lock' feature to larger commercial real estate mortgage loans and loan
portfolios greater than $30 million. We are working to develop a larger loan
"No-Lock" program that would be available before the end of the second quarter."
Like CRIIMI MAE's original "No-Lock" conduit program introduced last summer, the
larger "No-Lock" loans would be prepayable anytime: they have no prepayment
"lock-outs" and no yield maintenance premiums.
In response to the strong demand for its conduit-type product ranging from $2
million to $30 million, CRIIMI MAE expects its second quarter securitization of
these loans to exceed $400 million. The company also has begun originating loans
for its second securitization in the fourth quarter, expected to be twice the
size of the second quarter transaction. Both of these anticipated transaction
amounts include only conduit-type mortgages; they include no originations under
the expanded large loan program, which would represent additional volume.
By opening loan origination offices in Chicago and Texas, CRIIMI MAE would bring
its regional office total to six.
AGREES TO ACQUIRE SUBORDINATED CMBS FROM TWO OFFERINGS
As part of its on-going program of acquiring subordinated commercial
mortgage-backed securities (CMBS), CRIIMI MAE has entered into an agreement with
Nomura Asset Capital Corporation to purchase subordinated CMBS with a face
amount of approximately $200 million from Asset Securitization Corporation 1998
D-6. This transaction, expected to close by the end of March, is reported to be
the largest CMBS transaction to date with total assets of $3.7 billion.
CRIIMI MAE has also entered into an agreement with Merrill Lynch to acquire
subordinated CMBS with a face amount of approximately $110 million from Merrill
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Lynch Mortgage Investors, Inc. Series 1998-C2. This transaction is expected to
close by the end of April.
The closing of each of these transaction is subject to due diligence by CRIIMI
MAE. For both mortgage pools, CRIIMI MAE will be special servicer.
CRIIMI MAE is a full-service commercial mortgage company involved in the
acquisition, origination, securitization and servicing of multifamily and
commercial mortgages and mortgage related assets throughout the United States.
CRIIMI MAE assets total approximately $2.0 billion, and the company performs
various servicing functions for a portfolio of commercial mortgage assets
totaling approximately $19 billion. CRIIMI MAE offices are located in greater
Washington, DC, Boston, Memphis and San Francisco.
NOTE: Certain statements in this news release regarding CRIIMI MAE's business
constitute "forward-looking statements" under federal securities laws and are
subject to a number of risks and uncertainties. Any such forward-looking
statements should not be relied upon as predictions of future events. For a
discussion of such risks and uncertainties, which could cause actual results to
differ materially from those contained in the forward-looking statements, see
"Forward-Looking Statements" in CRIIMI MAE's Annual Report or Form 10-K for the
fiscal year ended December 31, 1997.
