Orix Makes $520M Offer for Criimi Mae CMBS Portfolio

ROCKVILLE, MD-Commercial Mortgage company Criimi Mae Inc. has made the headlines for the second time this month with the recent announcement that it is in receipt of a $520 million proposal from Orix Capital Markets LLC. Orix has offered to acquire as much as 100% of Criimi Mae’s subordinated commercial mortgage-backed securities or 100% of its outstanding common stock. This news comes about a week after the announcement of the completion of Brascan Real Estate Finance Fund’s and Bear, Stearns & Co. Inc.’s due diligence on their respective investment and financing deals with Criimi Mae.

In this most recently revealed deal, Orix is offering to buy up all of Criimi Mae’s CMBS for $520 million, or all outstanding shares of its common stock for a negotiated fee. According to an Orix filing, the $520-million all-cash transaction would yield $10.18 per share following debt repayment. Criimi Mae officials report that it has put together a special committee of its board members to evaluate the two Orix proposals. Investment banking concern Friedman, Billings, Ramsey and Co. is working with the Criimi Mae committee to help assess Orix’s offers.