Increases Wells Fargo Financing Facility by $100 Million to $325 Million and Extends Maturity
Increased Size, Renewed Terms and Closed New Financings Totaling More Than $850 Million Over the Past Twelve Months
New York, N.Y. — July 7, 2016 — Ares Commercial Real Estate Corporation (NYSE: ACRE) announced today that it entered into an agreement with Wells Fargo Bank to increase the size of its existing financing facility from $225 million to $325 million. In addition, the initial maturity of the facility was extended to December 14, 2017 along with two one-year extensions, each of which may be exercised at the company’s discretion, subject to certain conditions. Existing pricing on this facility remains in effect.
Over the past twelve months, the company has increased, renewed or extended six of its funding facilities totaling more than $695 million. In addition, ACRE closed a $155 million secured term loan facility in December 2015. As of June 30, 2016, the company's secured funding facilities and term loan agreements totaled more than $1.2 billion, an increase of approximately $200 million compared to a year ago.
“This latest agreement is a continuation of our progress in expanding our available sources of financing,” commented Tae-Sik Yoon, Chief Financial Officer of Ares Commercial Real Estate Corporation. “We appreciate Wells Fargo’s continued confidence in us and its support in expanding the capacity and extending the term of our facility at a time when the market for new investment opportunities is highly attractive.”
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. Through Ares Commercial Real Estate Corporation’s national direct origination platform, it provides a broad offering of flexible financing solutions for commercial real estate owners and operators. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management, L.P. (NYSE:ARES), a publicly traded, leading global alternative asset manager with approximately $94 billion of assets under management as of March 31, 2016. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.
Statements included herein, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities and Exchange Act of 1934, as amended, which relate to future events or Ares Commercial Real Estate Corporation’s 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 the risks described from time to time in its filings with the Securities and Exchange Commission. Any forward-looking statement, including any contained herein, speaks only as of the time of this press release and Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein.
Ares Commercial Real Estate Investor Relations:
Carl Drake or John Stilmar, 888-818-5298
Ares Commercial Real Estate Media Relations:
Bill Mendel, 212-397-1030