UNIONDALE, N.Y., Dec. 7, 2021 /PRNewswire/ -- ACRES Commercial
Realty Corp. (NYSE: ACR) (the "Company") announced that its newly
formed subsidiaries, ACRES Commercial Realty 2021-FL2 Issuer, Ltd.
(the "Issuer") and ACRES Commercial Realty 2021-FL2 Co-Issuer, LLC
(together with the Issuer, the "Co-Issuers"), will issue
$567.0 million of non-recourse,
floating-rate notes ("Offered Notes," the "Securities" or the
"Offering") at a weighted average cost of the one-month London
Interbank Offered Rate ("LIBOR")+180 basis points.
Mark Fogel, President and CEO of
the Company, stated, "We are very pleased to announce the execution
of our second managed-CLO of 2021. In total these two CLOs give the
Company capacity to finance up to approximately $1.5 billion of commercial real estate ("CRE")
first mortgage loans at a weighted average rate of LIBOR+163 basis
points. The transaction includes ramp-up and reinvestment features
that provide flexibility for the Company, allowing it to finance a
portion of its growing future mortgage loan pipeline at the
established rates; overseen by ACRES's well-qualified asset
management team. We want to thank all the members of the syndicate
for their outstanding work in delivering this result to the
Company."
The Offered Notes include:
- $385.0 million of Class A Notes,
which were rated Aaa(sf) by Moody's Investors Service, Inc., and
AAA(sf) by DBRS, Inc.("DBRS Morningstar") and will be issued at a
coupon of LIBOR+140 basis points;
- $30.6 million of Class A-S Notes,
which were rated AAA(sf) by DBRS Morningstar and will be issued at
a coupon of LIBOR+175 basis points;
- $38.5 million of Class B Notes,
which were rated AA(low)(sf) by DBRS Morningstar and will be issued
at a coupon of LIBOR+225 basis points;
- $47.3 million of Class C Notes,
which were rated A(low)(sf) by DBRS Morningstar and will be issued
at a coupon of LIBOR+265 basis points;
- $51.6 million of Class D Notes,
which were rated BBB(sf) by DBRS Morningstar and will be issued at
a coupon of LIBOR+310 basis points; and
- $14.0 million of Class E Notes,
which were rated BBB(low)(sf) by DBRS Morningstar and will be
issued at a coupon of LIBOR+400 basis points.
The transaction is expected to close by December 21, 2021, subject to satisfaction of
customary closing conditions. As of the cut-off date, the Offered
Notes are collateralized by floating-rate CRE first mortgage loans
and participations in first mortgage loans originated by the
Company with an aggregate outstanding principal balance of
approximately $558.8 million
(inclusive of one delayed close loan totaling approximately
$40.6 million). The transaction has
been structured with a 180-day ramp-up acquisition period during
which the Issuer may use amounts in the unused proceeds account to
acquire mortgage assets that satisfy certain eligibility criteria.
The transaction also has been structured with a 24-month
reinvestment period during which the Issuer will be permitted to
reinvest principal proceeds from the mortgage assets to acquire
additional mortgage loans and participations in mortgage loans that
satisfy certain eligibility criteria. The Company will retain the
Class F and Class G subordinated notes and the preferred shares in
the transaction.
The Securities will not be registered under the Securities Act
of 1933, as amended (the "Securities Act"), and may not be publicly
offered or sold in the United
States absent registration or an applicable exemption from
registration requirements. The Offering was made privately in
transactions exempt from the registration requirements of the
Securities Act. This press release is not an offer to sell any
securities of the Company or the Co-Issuers and is not a
solicitation of an offer to buy such securities. This press release
includes statements that may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are subject to a variety
of known and unknown risks, uncertainties and other factors that
are difficult to predict, many of which are beyond management's
control.
Factors that can affect future results are discussed in the
documents filed by the Company from time to time with the
Securities and Exchange Commission.
About ACRES Commercial Realty Corp.
ACRES Commercial Realty Corp. is a real estate investment trust
that is primarily focused on originating, holding and managing
commercial real estate mortgage loans and other commercial real
estate-related debt investments. The Company is externally managed
by ACRES Capital, LLC, a subsidiary of ACRES Capital Corp., a
private commercial real estate lender exclusively dedicated to
nationwide middle market CRE lending with a focus on multifamily,
student housing, hospitality, industrial and office property in top
U.S. markets. For more information, please visit the Company's
website at www.acresreit.com or contact investor
relations at IR@acresreit.com.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements can generally be identified by our use
of forward-looking terminology such as "may," "trend," "will,"
"continue," "expect," "intend," "anticipate," "estimate,"
"believe," "look forward" or other similar words or terms. Because
such statements include risks, uncertainties and contingencies,
actual results may differ materially from the expectations,
intentions, beliefs, plans or predictions of the future expressed
or implied by such forward-looking statements.
Factors that can affect future results are discussed in the
documents filed by the Company from time to time with the
Securities and Exchange Commission. The Company undertakes no
obligation to update or revise any forward-looking statement to
reflect new or changing information or events after the date hereof
or to reflect the occurrence of unanticipated events, except as may
be required by law.
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SOURCE ACRES Commercial Realty Corp.