Countrywide Secures Another $12 Billion

September 13, 2007 No Comments »

Countrywide announced on Thursday that it had recently arranged for $12 billion in additional secured borrowing capacity.

“We are confident that the actions which we have taken in response to the current environment will position us for profitable future growth and success,” stated David Sambol, president and chief operating officer, in a release.

The news comes after rumors circulated that the lender had been looking for further financing, despite a $2 billion investment from Bank of America, and a large Fed infusion.

The mortgage lender said the new financing comes through new or existing credit lines, and is addition to the $11.5 billion acquired through a line of credit from 40 banks last month.

Analysts seemed to be bullish on the news.

“The company’s recent actions to secure additional funding, as well as the migration of funding its originations through the (Countrywide Bank) thrift should substantially address funding concerns,” Credit Suisse analyst Moshe Orenbuch wrote in a statement.

Shares of Countrywide were trading up $1.28, or 7.7%, at $17.92 this morning after opening at $18.27 a share.

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