Ares Commercial Real Estate Corporation (NYSE:ACRE) announced today that
its wholly owned qualified REIT subsidiary ACRE Commercial Mortgage
2014-FL2 Ltd. (the “Issuer”) has received commitments from investors for
the purchase of approximately $308.7 million of secured floating rate
notes (the “Offered Notes”). The commitments were made in connection
with the offer and sale by the Issuer of the Offered Notes, which will
be backed by approximately $378.8 million of commercial and multifamily
mortgage loans originated or to-be originated by ACRC Lender LLC, a
wholly owned subsidiary of ACRE. ACRE expects to retain (either directly
or through one of its wholly owned subsidiaries) approximately $70.1
million of the non-investment grade notes (together with the Offered
Notes, “Notes”) and the equity of the Issuer, which notes and equity
were not offered to investors. The initial weighted average coupon of
the Notes is expected to be LIBOR plus 1.445%. The closing of the
offering is subject to a number of customary closing conditions and is
expected to close on or about August 15, 2014.
The Notes will not be registered under the Securities Act of 1933, as
amended and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
The offering was made privately in transactions exempt from the
registration requirements of the Securities Act.
The gross proceeds to the Issuer from the offering of the Offered Notes
are expected to be approximately $308.7 million. Ares Commercial Real
Estate Corporation intends to use the net proceeds of this offering to
repay outstanding amounts under its secured funding facilities (which
will increase the availability of funds under such facilities that it
can use to invest in additional target assets).
This press release is not an offer to sell any securities of Ares
Commercial Real Estate Corporation or any company and is not soliciting
an offer to buy such securities. It is issued pursuant to Rule 135c
under the Securities Act.
Statements included herein may constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995, which relate to future events or our future performance or
financial condition. These statements are not guarantees of future
performance, condition or results and involve a number of risks and
uncertainties. Actual results may differ materially from those in the
forward-looking statements as a result of a number of factors, including
those described from time to time in our filings with the Securities and
Exchange Commission. Ares Commercial Real Estate Corporation undertakes
no duty to update any forward-looking statements made herein.
Ares Commercial Real Estate Corporation
Carl Drake, 888-818-5298
Source: Ares Commercial Real Estate Corporation