Carlyle Capital Going Under
Carlyle Capital Corporation Limited today announced that, although it has been working diligently with its lenders, the Company has not been able to reach a mutually beneficial agreement to stabilize its financing. The Company expects that its lenders will promptly take possession of substantially all of the Company’s remaining assets.
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Overall, it has become apparent to the Company that the basis on which lenders are willing to provide financing against the Company’s collateral has changed so substantially that a successful refinancing is not possible.
– Carlyle Capital Statement (subscription required – bold and italics added)
A couple things.
First, Carlyle Capital’s entire $21 billion portfolio is made up of AAA mortgage backed securities guaranteed by Fannie Mae and Freddie Mac.
Two, and on the other hand, they were extremely leveraged with only $670 million in equity on its $21.7 billion portfolio (“Carlye Capital Nears Collapse As Accord Can’t Be Reached” (subscription required), The Wall Street Journal, Thursday March 13, C2).