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Ares Comm’l Real Estate, City Nat’l Bank Close $50MM Credit Facility

March 17, 2014, 07:32 AM
Filed Under: Real Estate

Ares Commercial Real Estate Corporation announced that, through a wholly owned subsidiary, it closed a $50 million secured revolving funding facility with City National Bank (the CNB Facility). The CNB Facility will be used to finance new investments and for other working capital and general corporate needs. Draws from the CNB Facility may be used as capital to allow ACRE to obtain additional leverage under its other funding facilities.

The initial maturity date of the CNB Facility is March 11, 2016 and is subject to one 12-month extension option if certain conditions are met.

In addition to the new CNB Facility, ACRE continues to utilize three secured funding facilities totaling $450 million in capacity.

“In recognition of our increased scale, diversified investment portfolio and strong underwriting, we appreciate City National’s support of our growth by providing us with a strategically important credit facility with significant flexibility,” said Todd Schuster, Co-Chief Executive Officer of ACRE. “Our new facility allows us to draw capital as needed to finance new loans in conjunction with our other funding facilities as well as better manage our working capital and liquidity needs. We believe it is a very attractive way to optimize our capital base and improve investment returns for our shareholders as we further scale our loan portfolio.”

Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in principal lending, mortgage banking and servicing of CRE investments.

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