CapitalSource makes redemption of $118.5 million of convertible bonds in first quarter

By Jennifer Chiou

New York, May 7 - CapitalSource Inc. redeemed $118.5 million principal amount of its convertible notes during the first quarter of 2009, according to the company's financial results report for the quarter.

The company said it recorded a $57 million loss on debt extinguishment for the quarter, compared to a loss of $24 million in the prior quarter primarily due to the convertible debt exchange.

"Our capital position is strong and liquidity remains adequate to meet anticipated needs," chief financial officer Donald F. Cole said in a news release.

"In the first quarter, we redeemed $118.5 million of convertible bonds for cash and reduced the commitment on our syndicated facility by $75 million. Earlier this week, we further reduced the commitment by an additional $25 million."

CapitalSource is a commercial lending, investment and asset management business based in Chevy Chase, Md.

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