New $50 Million Secured Funding Facility Closed with Capital One
Bank
Wells Fargo and Citibank Facilities Increased as a Result of IPO
CHICAGO--(BUSINESS WIRE)--
Ares Commercial Real Estate Corporation (NYSE: ACRE) announced today
that it has expanded its total revolving funding facility capacity to
$309 million through a new $50 million secured funding facility with
Capital One Bank and increases in its existing Wells Fargo and Citibank
facilities based on the completion of its initial public offering. Ares
Commercial Real Estate Corporation believes these facilities enhance its
ability to meet the flexible financing needs of middle market commercial
real estate owners and operators.
In connection with the Company’s initial public offering, the Wells
Fargo facility was increased from $75 million to $172.5 million and the
Citibank facility was increased from $50 million to $86.2 million.
Combining its revolving funding facility capacity with the net proceeds
from sales of its common stock, Ares Commercial Real Estate has raised
more than $450 million of capital, net of restricted cash, to make
middle market commercial real estate loans, with approximately $99
million committed or funded to date.
“We are very pleased to have increased the facilities with Wells Fargo
and Citibank and to establish a new lending relationship with Capital
One Bank,” commented John Bartling, Chief Executive Officer of Ares
Commercial Real Estate. “These financial commitments expand our
borrowing capacity and our funding sources, allowing us to execute on
the attractive growth opportunity for our direct lending business in the
commercial real estate market.”
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company
that originates, invests in and manages middle market commercial real
estate loans and other commercial real estate investments. Through its
national direct origination platform, Ares Commercial Real Estate
provides flexible financing solutions for middle market borrowers. Ares
Commercial Real Estate intends to elect to be taxed as a real estate
investment trust and is externally managed by an affiliate of Ares
Management LLC, a global alternative asset manager that had
approximately $52 billion in committed capital under management as of
April 30, 2012. For more information, please visit our website at
arescre.com.
Forward-Looking Statements
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 undertakes no duty to
update any forward-looking statements made herein.
Ares Commercial Real Estate Corporation
Carl Drake, 404-814-5204
[email protected]
Source: Ares Commercial Real Estate Corporation