UPDATE 1-CapitalSource to offer notes, shares; stock falls

* Plans to offer $300 million senior secured notes * To offer 17.5 mln shares

* Stock falls 5 pct

July 10 (Reuters) - CapitalSource Inc (CSE.N) said it intends to offer $300 million of senior secured notes and 17.5 million common shares, sending its shares down 5 percent.

Proceeds from the note offering would be used to make a $300 million payment required under the terms of a credit-facility amendment, the company said.

Chevy Chase, Maryland-based CapitalSource, which transformed itself from a real-estate investment trust to a bank in January, said on Tuesday lenders holding $778 million of its debt agreed to extend the maturity date by two years for a payment of $200 million. [ID:nBNG432718]

CapitalSource had also said the extending lenders will receive a $300 million payment, if they have to share their collateral with a new financing source.

The book-running manager for the stock offering is Credit Suisse Securities LLC, the company said.

CapitalSource shares were down 5 percent at $4.29 after the bell. The shares, which closed at $4.52 Friday on the New York Stock Exchange, traded as high as $14.74 last September. (Reporting by Anurag Kotoky in Bangalore; Editing by Vinu Pilakkott)