Ares Commercial Real Estate Corporation (NYSE:ACRE) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On December 22, 2017, Ares Commercial Real Estate Corporation (the “Company”), as borrower, and ACRC Holdings LLC, ACRC Mezz Holdings LLC, ACRC CP Investor LLC and ACRC Warehouse Holdings LLC, wholly-owned subsidiaries of the Company, as guarantors (collectively, the “Guarantors”), entered into an amendment to the Credit and Guaranty Agreement (the “Secured Term Loan”) with the lenders referred to therein and Cortland Capital Market Services LLC, as the administrative agent and collateral agent for the lenders.

The purpose of the amendment to the Secured Term Loan was to, among other things, (1) decrease the spread on advances under the Secured Term Loan to one, two, three or six month LIBOR plus 5.0% per annum (with no LIBOR floor), (2) extend the initial maturity date of the Secured Term Loan to December 22, 2020 and (3) in connection with a voluntary prepayment by the Company, decrease the facility amount of the Secured Term Loan to $110.0 million. The initial maturity date of the Secured Term Loan is subject to a one-year extension which may be exercised at the Company’s option, provided there are no existing events of default under the Secured Term Loan. During the extension period, the spread on advances under the Secured Term Loan increases every three months by 0.125%, 0.375% and 0.75% per annum, respectively, beginning after the third-month of the extension period. Certain prepayments of principal amounts which are made by the Company prior to the 33-month anniversary of the date of the amendment of the Secured Term Loan will be subject to prepayment premiums.

The obligations of the Company under the Secured Term Loan continue to be guaranteed by the Guarantors.

The foregoing description is only a summary of certain material provisions of the amendment to the Secured Term Loan, and is qualified in its entirety by reference to a copy of such agreement, which is filed herewith as Exhibit10.1 and by this reference incorporated herein.

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 Form 8-K is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits:

Ares Commercial Real Estate Corp Exhibit
EX-10.1 2 firstamendmenttocreditan.htm EXHIBIT 10.1 firstamendmenttocreditan FIRST AMENDMENT TO CREDIT AND GUARANTY AGREEMENT AND APPOINTMENT OF AGENTS THIS FIRST AMENDMENT TO CREDIT AND GUARANTY AGREEMENT AND APPOINTMENT OF AGENTS (this “Amendment”) is dated as of December 22,…
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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.