An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Ares Commercial Real Estate Corporation Adds New Borrowing Capacity to Support Further Growth
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Ares Commercial Real Estate Corporation (NYSE: ACRE) has successfully amended its secured Term Loan, increasing its capacity from $60 million to $150 million while reducing the all-in pricing from LIBOR plus 5.75% to a fixed rate of 4.50%. This new agreement extends the loan's maturity to November 2026. Additionally, the company raised its revolving facility with City National Bank from $50 million to $75 million. The funds will support new loan originations, enhance the investment portfolio, and meet general corporate needs.
Positive
Term Loan capacity increased to $150 million; reduced all-in pricing to 4.50%; maturity extended to November 2026.
Revolving facility with City National Bank increased to $75 million.
Funds will be used for new loan originations and enhancing investment portfolio.
Negative
None.
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
NEW YORK--(BUSINESS WIRE)--
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.
