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.
Estate Corporation and its subsidiary ACRC Lender C LLC
(together, the Company), entered into an amendment (the Citibank
Facility Amendment) to its existing Master Repurchase Agreement
with Citibank, N.A. (as amended, the Citibank Facility). The
Citibank Facility Amendment, among other things, extends the
initial maturity date of the facility to December 10, 2018. The
maturity date of the facility is subject to three one-year
extension options (the first extension option extending the
maturity date to December 9, 2019, the second extension option
extending the maturity date to December 8, 2020 and the third
extension option extending the maturity date to December 8,
2021), each of which may be exercised at the Companys option,
subject to the satisfaction of certain conditions, including no
existing defaults under the Citibank Facility and applicable
extension fees being paid.
interest rate applicable to the $302.2 million of advances funded
under the facility as of the Extension Date will remain unchanged
at one-month LIBOR plus 2.32% per annum. New advances applicable
to assets which are funded under the Citibank Facility after the
Extension Date will accrue interest at a rate equal to one-month
LIBOR plus a pricing margin range of 2.25% to 2.50% per annum.
provisions of the Citibank Facility Amendment, and is qualified
in its entirety by reference to a copy of such agreement, which
is filed herewith as Exhibit 10.1 and by this reference
incorporated herein.
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
this Current Report on Form 8-K is incorporated herein by
reference.
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Exhibit Number
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Exhibit Description
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10.1
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Third Amendment to Master Repurchase Agreement and
Guaranty dated as of December 8, 2016, among ACRC Lender C LLC, as borrower, Ares Commercial Real Estate Corporation, as guarantor, and Citibank, N.A., as lender. |
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. Ares Commercial Real Estate Corporation (NYSE:ACRE) Recent Trading Information
Ares Commercial Real Estate Corporation (NYSE:ACRE) closed its last trading session down -0.08 at 14.19 with 148,914 shares trading hands.