Ares Commercial Real Estate Corporation Upsizes, Reduces the Cost and Extends the Reinvestment Period of Its
Existing Securitization
Privately Placed $172.7 Million of Additional Investment Grade Notes and Reduced Cost of Funds by 15 Basis
Points
Extended the Reinvestment Period for Two Additional Years to March 2021
Ares Commercial Real Estate Corporation (NYSE: ACRE) (the “Company” or “ACRE”) announced that its subsidiary placed an
additional $172.7 million of investment grade notes, reduced the costs and extended the reinvestment period in connection with its
existing ACRE Commercial Mortgage 2017-FL3 securitization (the “2017-FL3 Securitization”).
Together with $272.9 million of investment grade notes issued to a third-party in the initial March 2017 private placement, the
2017-FL3 Securitization now totals $445.6 million of investment grade notes held by a third-party investor. In total, these notes
have a blended initial weighted average coupon of LIBOR plus 1.70%, representing a 15 basis point decrease in the cost of funds or
approximately $0.02 per share of additional earnings per annum for ACRE. In addition, the reinvestment period of the 2017-FL3
Securitization was extended two additional years to March 2021.
“This transaction reduces our borrowing costs and further strengthens our balance sheet by increasing and extending our
non-recourse, match-funded financing,” said Jamie Henderson, President and Chief Executive Officer of ACRE.
“Our ability to privately place this transaction with a single high-quality investor significantly reduced market risk,” said
Tae-Sik Yoon, Chief Financial Officer of ACRE. “We were also able to deliver significant cost savings by executing this transaction
using the internal relationships, structuring expertise and placement resources of Ares Management.”
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 its national direct origination platform, the Company provides a
broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company originates
senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value
added financing on a variety of properties located in liquid markets across the United States. 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 Corporation. (NYSE:ARES), a publicly traded, leading global alternative asset manager with approximately $125 billion of
assets under management as of September 30, 2018. 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.
Forward-Looking Statements
Statements included herein or on the webcast / conference call, 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. 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.
Ares Commercial Real Estate Corporation
Investors:
Carl Drake or John Stilmar
+1-888-818-5298
iracre@aresmgmt.com
Media:
Bill Mendel
+1-212-397-1030
bill@mendelcommunications.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20190114005801/en/