News Column

APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. FILES (8-K) Disclosing Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

June 12, 2014



Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On June 6, 2014 and June 12, 2014, Apollo Commercial Real Estate Finance, Inc. (the "Company") and two indirect wholly-owned subsidiaries of the Company (the "Funding Subsidiaries") entered into amendment letters (the "JPMorgan Letters") relating to the second amended and restated master repurchase agreement (the "JPMorgan Facility") with JPMorgan Chase Bank, N.A. The JPMorgan Letters extended, as applicable, (i) until June 12, 2014, the temporary increase of the maximum permitted borrowing from $100.0 million to approximately $146.8 million previously described in the Company's Current Report on Form 8-K that was filed by the Company on May 13, 2014, and (ii) until July 1, 2014, the waiver of compliance with the minimum liquidity covenant under the JPMorgan Facility that was previously granted on April 25, 2014 as described in the Company's Form 10-Q for the quarter ended March 31, 2014 that was filed by the Company on April 30, 2014.

On June 12, 2014, the Company and the Funding Subsidiaries also entered into a third amendment and restatement of the JP Morgan Facility (the "Third Amendment and Restatement") with JPMorgan Chase Bank, N.A. The Third Amendment and Restatement amended the JPMorgan Facility to facilitate the financing of mezzanine loans under the JPMorgan Facility and increased the maximum permitted borrowing to $175.0 million. In connection with the Third Amendment and Restatement, the guarantee provided by the Company for the obligations of the Funding Subsidiaries was also amended to require the Company to hold minimum liquidity equal to the greater of 5% of its total recourse indebtedness and $15.0 million. The Third Amendment and Restatement contains affirmative and negative covenants and provisions regarding events of default that are customary for similar repurchase facilities. The Third Amendment and Restatement expires in January 2015.

--------------------------------------------------------------------------------


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Edgar Glimpses


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters