Apollo Commercial Real Estate Finance, Inc. Closes Two Financing Facilities

Rhea-AI Summary

Apollo Commercial Real Estate Finance (ARI) announced the closure of two financing facilities, enhancing its liquidity and financing relationships. The first is a senior secured construction loan of up to $388.4 million from Bank of America for the Brook development in Brooklyn, NY, with a four-year term and a one-year extension option. The second facility, worth £160.8 million, is a master repurchase agreement with MUFG Securities for a mixed-use development in London, maturing in December 2023. CEO Stuart Rothstein emphasized efforts to diversify funding sources and improve the balance sheet.

Positive

• Closing of a $388.4 million construction loan enhances liquidity.
• Diversification of financing relationships through new agreements.
• Secured a £160.8 million master repurchase agreement, providing additional capital.

Negative

• None.

NEW YORK, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI), today announced the Company closed two financing facilities secured by two assets.

The first facility is a non-revolving, senior secured construction loan with a maximum advance rate of up to $388.4 million from Bank of America to finance the construction of the Brook, a development consisting of 448,000 rentable square feet of luxury, mixed-use multifamily and retail space located on Fulton Street in Brooklyn, NY. The initial term of the facility is four years, with a one-year extension option.   

The second facility is a £160.8 million master repurchase agreement with MUFG Securities EMEA Plc secured by the funded portion of the construction loan on a mixed-use development in London. The facility matures in December 2023, with options to extend to June 2025.

Commenting on the facilities, Stuart Rothstein, Chief Executive Officer and President of ARI said: “These facilities provided ARI with increased liquidity while expanding our financing relationships. We continue to explore ways to diversify our funding sources and enhance our balance sheet.”

About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate investment trust that primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings and other commercial real estate-related debt investments. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company and an indirect subsidiary of Apollo Global Management, Inc., a high-growth, global alternative asset manager with approximately $515 billion of assets under management as of June 30, 2022.

Additional information can be found on the Company's website at www.apollocref.com. Please note that our URL address has changed.

Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. When used in this release, the words believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: macro- and micro-economic impact of the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic; actions taken by governmental authorities to contain the COVID-19 pandemic or treat its impact; the impact of the COVID-19 pandemic on the Company’s financial condition, results of operations, liquidity and capital resources; market trends in the Company’s industry, interest rates, real estate values, the debt securities markets or the general economy; the timing and amounts of expected future fundings of unfunded commitments; the return on equity; the yield on investments; the ability to borrow to finance assets; the Company’s ability to deploy the proceeds of its capital raises or acquire its target assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CONTACT:	Hilary Ginsberg
	Investor Relations
	(212) 822-0767

FAQ

What financing facilities did ARI recently close?

ARI closed a $388.4 million construction loan and a £160.8 million master repurchase agreement.

What is the term of ARI's construction loan from Bank of America?

The construction loan has an initial term of four years, with a one-year extension option.

When does the master repurchase agreement with MUFG mature?

The master repurchase agreement matures in December 2023, with options to extend until June 2025.

How does the new financing impact ARI's balance sheet?

The new financing facilities enhance ARI's liquidity and support efforts to diversify funding sources.