Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

JPMorgan Facility

On March 31, 2017, ACREFI Holdings J-I, LLC and ACREFI Holdings J-II, LLC, each an indirect wholly-owned subsidiary of Apollo Commercial Real Estate Finance, Inc. (the “Company”), entered into a Fifth Amended and Restated Master Repurchase Agreement with JPMorgan Chase Bank, National Association (the “JPMorgan Facility”). The JPMorgan Facility provides for advances of up to $975.0 million for the sale and repurchase of eligible senior commercial or multifamily mortgage loans, junior commercial or multifamily mortgage loans, mezzanine loans and participation interests therein that are secured by properties located in the United States, England and Wales. The JPMorgan Facility has a maturity date of March 31, 2019 plus a one-year extension available at the option of the Company, subject to certain conditions including payment of a fee. Amounts borrowed under the JPMorgan Facility accrue interest at a per annum pricing rate equal to the sum of (i) one-month LIBOR plus (ii) the applicable spread. Maximum advance rates under the JPMorgan Facility range from 25% to 80% of the estimated fair value of the purchased loans depending on its loan-to-value. Margin calls may occur at any time specified aggregate margin deficit thresholds. The JPMorgan Facility contains provisions regarding events of default that are customary for similar repurchase agreements. The Company has agreed to provide a limited guarantee of the obligations of the sellers under the JPMorgan Facility. In connection with the JPMorgan Facility, the Company is subject to customary covenants, including continuing to operate in a manner that allows the Company to qualify as a real estate investment trust for federal income tax purposes, and financial covenants with respect to minimum consolidated tangible net worth, maximum total indebtedness to consolidated tangible net worth, and minimum liquidity.

Deutsche Bank Facility

On April 3, 2017, ACREFI Holdings DB, LLC, an indirect wholly-owned subsidiary of the Company, entered into an Amended and Restated Master Repurchase Agreement with Deutsche Bank AG, Cayman Islands Branch and Deutsche Bank AG, London Branch (the “DB Facility”). The DB Facility provides for advances of up to $450.0 million and £45.0 million for the sale and repurchase of eligible first mortgage loans secured by commercial or multifamily properties located in the United States and the United Kingdom. The DB Facility has a maturity date of March 31, 2018 plus two one-year extensions available at the option of the Company, subject to certain conditions including payment of a fee. Advances under the DB Facility accrue interest at a per annum pricing rate equal to the sum of (i) the applicable U.S. or U.K. LIBOR plus (ii) the applicable spread. Maximum advance rates under the DB Facility are determined by the buyer on a transaction basis based on the estimated fair value of the applicable purchased loans. Margin calls may occur any time at specified aggregate margin deficit thresholds. The DB Facility contains provisions regarding events of default that are customary for similar repurchase agreements. The Company has agreed to provide a guarantee of the obligations of the seller under the DB Facility. In connection with the DB Facility, the Company is subject to customary covenants, including continuing to operate in a manner that allows the Company to qualify as a real estate investment trust for federal income tax purposes and financial covenants with respect to minimum consolidated tangible net worth, maximum total indebtedness to consolidated tangible net worth, and minimum liquidity.

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About Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI)

Apollo Commercial Real Estate Finance, Inc. is a real estate investment trust. The Company primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings, commercial mortgage-backed securities (CMBS) and other commercial real estate-related debt investments. The Company targets investments that are secured by institutional quality real estate. The Company’s principal business objective is to make investments in its target assets in order to provide attractive risk adjusted returns to its stockholders over the long term, primarily through dividends and secondarily through capital appreciation. The Company is externally managed and advised by ACREFI Management, LLC.

Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Recent Trading Information

Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) closed its last trading session down -0.05 at 18.72 with 914,884 shares trading hands.

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