UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): March 14, 2003
Commission File Number: 333-11625
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CAPITAL ALLIANCE INCOME TRUST LTD.,
A REAL ESTATE INVESTMENT TRUST
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(Exact name of registrant as specified in its charter)
Delaware 94-3240473
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(State or other Jurisdiction (I.R.S. Employer Identification Number)
of incorporation)
50 California Street
Suite 2020
San Francisco, California 94111
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(Address of principal executive office) (zip code)
(415) 288-9575
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(Registrant's telephone number, including area code)
Item 1. Changes in Control of Registrant.
Not Applicable.
Item 2. Acquisition of Disposition of Assets.
Not Applicable.
Item 3. Bankruptcy or Receivership.
Not Applicable.
Item 4. Changes in Registrant's Certifying Accountants.
Not Applicable.
Item 5. Other Events.
Not Applicable.
Item 6. Resignations of Registrant's Directors.
Not Applicable.
Item 7. Financial Statements and Exhibits.
Not Applicable.
Item 8. Change in Fiscal Year.
Not Applicable.
Item 9. Regulation FD Disclosures.
Item 10. Not Applicable.
Item 11. Not Applicable.
Item 12. Financial Press Releases.
Exhibit "A", Press Release, dated March 14, 2003, attached hereto and
incorporated herein, regarding extension of major credit facility maturity date
and increase in amount of facility.
EXHIBITS
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A. Press Release, dated March 14, 2003
SIGNATURES
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Pursuant to the requirements of Section 13 or 15(D) 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: March 20, 2003 By: /s/ Thomas B. Swartz
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Thomas B. Swartz
Chairman
Chief Executive Officer
EXHIBIT "A"
CAPITAL ALLIANCE INCOME TRUST LTD.
ANNOUNCES EXTENSION OF
A MAJOR TERM CREDIT FACILITY
SAN FRANCISCO--(BUSINESS WIRE)--March 14, 2003--Capital Alliance Income Trust
Ltd. ("CAIT") (AMEX: CAA-news), a specialty, non-conforming residential mortgage
finance company, announced that it has negotiated a 21-month extension of the
maturity date of its existing $7,000,000 term credit facility with Washington
Mutual Bank, FA ("Washington Mutual") through June 30, 2004. As part of the
negotiations, Washington Mutual also agreed to provide CAIT with up to an
additional $3,000,000 credit facility to allow CAIT to "bulge" its aggregate
borrowing from WAMU up to $10,000,000 during the facility's term.
Thomas B. Swartz, Chairman and CEO of CAIT, stated that "the extension" of the
Washington Mutual term credit facility will increase CAIT's liquidity and
enhance its ability to more fully take advantage of favorable interest rate
spreads and will enable CAIT to increase its niche bridge financing business and
expand its core portfolio mortgage lending business which has been consistently
profitable.
Richard J. Wrensen, Executive Vice-President and Chief Financial Officer of CAIT
again reiterated his observation in 2002 that CAIT not only will continue to
discuss increased credit commitments with its existing lenders and to seek
additional borrowing facilities and banking relationships, but also will explore
avenues to increase its capital base. He observed that "CAIT continues to
maintain a conservative balance sheet since CAIT and its subsidiary's borrowings
are only 1.5 times their capital base. Most mortgage REIT's borrow six to eight
or more times their capital. All loans with a combined loan-to-value ratio of
more that 75% of the collateral's appraised value at the time of funding are
pre-sold into the secondary market. Only loans with a combined loan-to-value
ratio of less than 75% are retained in CAIT's portfolio of mortgage
investments."
CAIT is a specialty residential mortgage lender which invests in high-yielding,
non-conforming residential mortgage loans on one-to-four unit residential
properties located primarily in California and other western states. It also
originates loans for sale to investors on a whole loan basis for cash through
its subsidiary Capital Alliance Funding Corporation.
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.
Richard J. Wrensen, EVP & CFO
415/288-9575
www.calliance.com