On June 5, 2019, ACRC Lender LLC (“ACRC Lender”), a subsidiary of Ares Commercial Real Estate Corporation (the “Company”), entered into an amendment to its $50.0 million secured revolving funding facility (the “CNB Facility”) with City National Bank (“CNB”). The purpose of the amendment was to, among other things: (1) decrease the interest rate on advances under the CNB Facility to a per annum rate equal to the sum of, at the ACRC Lender’s option, either (a) LIBOR for a one, two, three, six or, if available to all lenders, 12-month interest period plus 2.65% or (b) a base rate (which is the highest of a prime rate, the federal funds rate plus 0.50%, or one-month LIBOR plus 1.00%) plus 1.00%, provided that in no event shall the interest rate be less than 2.65%; (2) permit ACRC Lender to request that CNB increase the commitment amount of the CNB Facility from $50.0 million to $75.0 million once per calendar year for a period of 120 days, which increase in the commitment amount is subject to CNB’s approval; and (3) extend the initial maturity date of the CNB Facility to March 11, 2020. In addition, ACRC Lender has two 12-month extensions at its option provided that certain conditions are met and applicable extension fees are paid, which, if exercised, would extend the maturity date of the CNB Facility to March 10, 2022. Borrowings under the CNB Facility are subject to the maintenance of a minimum borrowing base of pledged investments. The CNB Facility is guaranteed by the Company.

The foregoing description is only a summary of certain material provisions of the amendment to the CNB Facility and is qualified in its entirety by reference to a copy of such agreement, which is filed herewith as Exhibit 10.1.

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 exhibit101.htm EXHIBIT 10.1 Exhibit Exhibit 10.1AMENDMENT NUMBER SEVEN TO CREDIT AGREEMENTTHIS AMENDMENT NUMBER SEVEN TO CREDIT AGREEMENT (this “Amendment”),…
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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.