CapmarkGroup Inc. received a distribution of approximately $1.55 billion of assets from Capmark Bank, its wholly-owned industrial bank based in Utah. The distribution consists of commercial real estate loans, commercial real estate properties and related assets with an aggregate net fair value of approximately $1.33 billion, plus approximately $220 million in cash.
After giving effect to the distribution, Capmark Bank had stockholders’ equity of approximately $400 million and its remaining assets consisted primarily of cash.
Capmark Financial Group plans to use a portion of the cash it received from the transaction to fully redeem all of its outstanding floating rate first lien extendible B notes due 2015. Following the redemption of the notes, the company will consider making a distribution of excess cash to its shareholders. The details of the distribution have not yet been determined.