Ares Commercial Real Estate Corporation (NYSE:ACRE) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On August 4, 2017, ACRC Lender ML LLC (“ACRC Lender ML”), a subsidiary of Ares Commercial Real Estate Corporation, entered into an amendment to its $180.0 million Master Repurchase Agreement (the “MetLife Facility”) with Metropolitan Life Insurance Company. The purpose of the amendment to the MetLife Facility was to, among other things, decrease the interest rate on advances under the MetLife Facility to a rate of one-month LIBOR plus 2.30% and extend the initial maturity date of the MetLife Facility to August 12, 2020. The initial maturity date of the MetLife Facility is subject to two one-year extensions (the first extension option extending the maturity date to August 12, 2021 and the second extension option extending the maturity date to August 12, 2022), each of which may be exercised at ACRC Lender ML’s option, subject to the satisfaction of certain conditions and applicable extension fees being paid.
The foregoing description is only a summary of certain material provisions of the agreements relating to the MetLife Facility and is qualified in its entirety by reference to a copy of such agreements, which are filed herewith as Exhibit 10.1 and Exhibit 10.2, respectively.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information required by Item 2.03 contained in Item 1.01 of this Current Report on Form8-K is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits:
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Exhibit Number |
ExhibitDescription |
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10.1 |
First Amendment to Master Repurchase Agreement, dated as of August 4, 2017, by and between ACRC Lender ML LLC, as seller, and Metropolitan Life Insurance Company, as buyer. |
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10.2 |
Reaffirmation of Guarantor, dated as of August 4, 2017, by Ares Commercial Real Estate Corporation in favor of Metropolitan Life Insurance Company. |
Ares Commercial Real Estate Corp ExhibitEX-10.1 2 metlifefirstamendmenttomas.htm EXHIBIT 10.1 Exhibit Exhibit 10.1FIRST AMENDMENT TO MASTER REPURCHASE AGREEMENTThis FIRST AMENDMENT TO MASTER REPURCHASE AGREEMENT (this “Amendment”) is made as of this 4th day of August,…To view the full exhibit click here
About Ares Commercial Real Estate Corporation (NYSE:ACRE)
Ares Commercial Real Estate Corporation is a specialty finance company. The Company is focused on directly originating, managing and servicing a portfolio of commercial real estate (CRE) debt-related investments for its own account. It operates in two segments: principal lending and mortgage banking. Its target investments include senior loans, bridge loans, subordinated debt, preferred equity and other CRE investments. The Company is also engaged in the mortgage banking business through its subsidiary, ACRE Capital LLC (ACRE Capital). Its Principal Lending Business includes all business activities of the Company, which represents investments in real estate related loans and securities that are held for investment. In mortgage banking business, the Company directly originates long-term senior loans collateralized by multifamily and senior-living properties, and sells them to third parties pursuant to programs overseen by government agencies and government-sponsored enterprises.