CHEVY CHASE, Md., July 7 /PRNewswire-FirstCall/ -- CapitalSource Inc. (NYSE:CSE) today announced that lenders holding $778 million of indebtedness under its $900 million senior secured syndicated bank facility (the "Facility") have consented to amend and extend the Facility as follows: -- The maturity date for $778 million of the Facility will be extended until March 31, 2012 upon satisfaction of certain payment conditions as described below -- The extending lenders will receive, in aggregate, a $200 million payment unless they are required to share their collateral with a new financing source, in which event they will receive a $300 million payment -- Lenders under the Facility who do not execute the extension will not receive any payment currently, and all amounts owing to them will continue to be due by the current maturity date of the Facility - March 13, 2010 -- Upon closing, the Facility covenants will be amended to be more consistent with the asset-based structure of the Facility To satisfy the extension payment conditions, CapitalSource expects to utilize proceeds of a senior secured bond offering, available cash and/or other forms of financing. "Following the successful renewal and/or payoff of our five non-recourse credit facilities earlier this year, we are particularly pleased to quickly renew and extend our syndicated bank facility which involved negotiation with 22 banks," said John K. Delaney, CapitalSource Chairman and CEO. Commenting on the amendment, CapitalSource CFO Donald F. Cole said, "We view this as a very attractive amendment for the Company, because it accomplishes our stated goal of extending the terms of our credit facilities to better match the duration of our assets. In addition, we believe this extension should put to rest concerns about liquidity challenges that have resulted from the previously annual renewals of our credit facilities." "The receipt of consent for this amendment from our Facility lenders is evidence of the productive and cooperative working relationship we have with the syndicate banks," added CapitalSource Treasurer, Jeffrey Lipson. "We expect to fully repay the Facility by the end of the newly extended term." This press release does not constitute an offer of securities for sale. About CapitalSource CapitalSource Inc. (NYSE:CSE) is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. As of March 31, 2009, CapitalSource had total commercial assets of $11.4 billion and $4.7 billion in deposits. The Company is headquartered in Chevy Chase, MD. Visit http://www.capitalsource.com/ for more information. Forward Looking Statements This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations and statements about our syndicated bank facility, our liquidity and operations, and our intentions with respect to raising capital and making payments under the syndicated bank facility, all of which are subject to numerous assumptions, risks, and uncertainties. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "assume," "intend," "believe," "expect," "estimate," "plan," "goal," "will," "outlook," "continue," "look forward," "should," and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control and which may cause actual results, performance, or achievements to differ materially from those that are anticipated. Actual results, performance, actions or achievements could differ materially from those contained or implied by such statements for a variety of factors, including without limitation, those described in CapitalSource's 2008 Annual Report on Form 10-K and documents subsequently filed by CapitalSource with the Securities and Exchange Commission. All forward-looking statements included in this release are based on information available at the time of the release. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. DATASOURCE: CapitalSource Inc. CONTACT: Investor Relations, Dennis Oakes, Senior Vice President Investor Relations, +1-212-321-7212, ; or Media Relations, Michael Weiss, Director of Communications, +1-301-841-2918, , both of CapitalSource Inc. Web Site: http://www.capitalsource.com/

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