CapitalSource Announces Tender Offer for 12.75% First Priority Senior Secured Notes Due 2014

CapitalSource Inc. CSE today announced that it has launched a Tender Offer and Consent Solicitation for holders of its outstanding 12.75% First Priority Senior Secured Notes due 2014. Pursuant to the Offer, the Company is offering to purchase any and all of the Notes for cash and is also soliciting consents to amend certain terms of the indenture governing the Notes. Adoption of the proposed Amendments requires the consent of holders of at least a majority of the outstanding aggregate principal amount of the Notes. The aggregate outstanding principal amount of the Notes as of August 30, 2011 was $272.5 million. The Tender Offer and Consent Solicitation are scheduled to expire at 5:00 p.m., New York City time, on September 28, 2011 (the "Expiration Date"), subject to extension at the Company's option. Tendered Notes may be withdrawn until the withdrawal deadline, which will be the earlier of (1) the time and date that a supplemental indenture implementing the Amendments is executed (which is expected to occur shortly after the Requisite Consents are received) and (2) 5:00 P.M., New York City time, on September 14, 2011 (subject to extension at the Company's option). Tendered Notes may not be withdrawn after the withdrawal deadline unless required by law.