Ares Commercial Real Estate Corporation Adds New Borrowing Capacity to Support Further Growth
15 November 2021 - 12:30PM
Business Wire
Amends Secured Term Loan to Increase
Capacity, Reduce All-in Pricing and Extend Maturity
Increases Size of CNB Facility by $25.0
Million to $75.0 Million
Ares Commercial Real Estate Corporation (the "Company") (NYSE:
ACRE) announced today that it has entered into an agreement to
increase its existing Term Loan from $60.0 million to $150.0
million, reduce the all-in pricing from LIBOR plus 5.75% to an
initial fixed rate of 4.50% and extend the initial maturity to
November 2026.
In addition, the Company announced that it increased the size of
its secured revolving facility with City National Bank (“CNB
Facility”) from $50.0 million to $75.0 million. Collectively, the
Term Loan and the CNB Facility will be used to fund new loan
originations, increase the investment portfolio, and for other
working capital and general corporate purposes.
“The increases in the Term Loan and the CNB Facility provide us
with strategically important and attractive financing to support
the growth in our investment activity and help us to achieve our
target leverage levels and enhance our earnings,” said Bryan
Donohoe, Chief Executive Officer of ACRE. “Utilizing the internal
resources of our manager, we were able to execute both financing
transactions directly, resulting in significant cost savings to
ACRE.”
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance
company primarily engaged in originating and investing in
commercial real estate loans and related investments. Through its
national direct origination platform, the Company provides a broad
offering of flexible and reliable financing solutions for
commercial real estate owners and operators. The Company originates
senior mortgage loans, as well as subordinate financings, mezzanine
debt and preferred equity, with an emphasis on providing value
added financing on a variety of properties located in liquid
markets across the United States. Ares Commercial Real Estate
Corporation elected and qualified to be taxed as a real estate
investment trust and is externally managed by a subsidiary of Ares
Management Corporation. For more information, please visit
www.arescre.com. The contents of such website are not, and should
not be deemed to be, incorporated by reference herein.
Forward-Looking Statements
Statements included herein, may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities and Exchange Act of 1934,
as amended, which relate to future events or the Company’s future
performance or financial condition. Such statements are intended to
be identified by using words such as “believe,” “expect,” “intend,”
“estimate,” “anticipate,” “will,” “project,” “plan” and similar
expressions in connection with any discussion of future operating
or financial performance. Readers are cautioned not to put undue
reliance on such forward-looking statements. These statements are
not guarantees of future performance, condition or results and
involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including the risks described from
time to time in its filings with the Securities and Exchange
Commission. Any forward-looking statement, including any contained
herein, speaks only as of the time of this press release and Ares
Commercial Real Estate Corporation undertakes no duty to update any
forward-looking statements made herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20211115005409/en/
Investor Relations Contact: Ares Commercial Real Estate
Corporation Carl Drake or Veronica Mendiola Mayer (888) 818-5298
iracre@aresmgmt.com
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