UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 8K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): January 3, 2006
Commission File Number: 333-11625
____________________
CAPITAL ALLIANCE INCOME TRUST LTD.,
A REAL ESTATE INVESTMENT TRUST
_____________________________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 94-3240473
- ---------------------------- ----------------------
(State or other Jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
100 Pine Street
Suite 2450
San Francisco, California 94111
- --------------------------------------- ----------------------
(Address of principal executive office) (zip code)
(415) 288-9575
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CRF
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CRF
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(d) under the Exchange
Act (17 CRF 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CRF 240.13e-4(c))
Item 8.01 Other Event
On January 3, 2006, Capital Alliance Income Trust, Ltd. announced a new term
credit facility. A copy of the press release is attached as Exhibit 99.1.
Exhibit 99.1 Press release dated January 3, 2006
Press Release
CAPITAL ALLIANCE INCOME TRUST LTD.
ANNOUNCES NEW TERM CREDIT FACILITY
SAN FRANCISCO - (BUSINESS WIRE) - January 3, 2006 - Capital Alliance Income
Trust Ltd. ("CAIT") (AMEX: CAA-news), a specialty, residential mortgage finance
company organized as a real estate investment trust, announced that it has
negotiated a $7,000,000 term credit facility with Franklin Bank SSB, (NASDAQ:
FBTX) of Houston, Texas. The two year facility, which matures November 2007,
also has a one year extension option.
Richard Wrensen, Executive Vice-President and Chief Financial Officer of CAIT,
stated that, "We hope that this facility is the beginning of a successful long
term relationship. The Franklin Bank facility will enable CAIT to pledge its
core mortgage portfolio and obtain increased interest rate spreads of
approximately 300 basis points over the trust's currently existing financing.
CAIT will also continue to seek additional, competitively priced credit
commitments from Franklin Bank and other lenders. Our current balance sheet is
significantly underleveraged as outstanding borrowings, including the Franklin
Bank borrowing, are less than two times equity capital. Most mortgage REITs
borrow six to eight or more times their equity capital."
CAIT, a specialty residential lender, invests in conforming and high-yielding,
non-conforming residential mortgage loans on one-to-four-unit-residential
properties located primarily in California and other western states. Only loans
with a combined loan-to-value ratio of not more than 75% at the time of funding
comprise CAIT's core mortgage investment portfolio.
This document contains "forward-looking statements" (within the meaning of the
Private Securities Litigation Reform Act of 1995) that inherently involve risks
and uncertainties. CAIT's actual results and liquidity can differ materially
from those anticipated in these forward-looking statements because of changes in
the level and composition of CAIT's investments and unforeseen factors. As
discussed in CAIT's filings with the Securities and Exchange Commission, these
factors may include, but are not limited to, changes in general economic
conditions, the availability of suitable investments, fluctuations in and market
expectations for fluctuations in interest rates and levels of mortgage
prepayments, deterioration in credit quality and ratings, the effectiveness of
risk management strategies, the impact of leverage, the liquidity of secondary
markets and credit markets, increases in costs and other general competitive
factors.
Contact: Capital Alliance Income Trust Ltd., San Francisco
Richard Wrensen, EVP and CFO - 415/288-9575
rwrensen@calliance.com
www.calliance.com
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, hereunto duly authorized.
CAPITAL ALLIANCE INCOME TRUST, LTD.,
A Real Estate Investment Trust
Dated: January 5, 2006 By: /s/ Richard Wrensen
-------------------
Richard J. Wrensen,
Chief Financial Officer