Ares Commercial Real Estate Corporation Closes $667 Million CRE CLO
Jan 29, 2021 6:30 AM
Achieves Initial Blended Cost of Financing of LIBOR + 1.17% with Initial Advance Rate of 81%
Significantly Increases Match-Term, Non-Recourse Financing and Reduces Funding Costs
The CRE CLO transaction provided the following benefits to the Company:
- Reduced weighted average cost of funds
-
Increased non-recourse financing from 36% as of
September 30, 2020 to 67% of total aggregate amounts outstanding under its financing facilities and securitizations -
Enabled ACRE to close
$146 million of new loans previously held in Ares’ real estate debt warehouse facility
These benefits are expected to be accretive to the Company’s earnings.
“We are very pleased with the execution of our fourth securitization in the current market environment, which we believe validates the strong credit quality of our loan portfolio and the value of the broader Ares Management franchise,” said
“This is a financially positive transaction for our Company that enhances our earnings,” said
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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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 the Company’s future performance or financial condition. Such statements are intended to be identified by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Readers are cautioned not to put undue reliance on such forward-looking statements. 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
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