Boston, MA 08/19/2014 (wallstreetpr) – Ares Commercial Real Estate Corp (NYSE:ACRE) has entered into a new $180 million MetLife facility. It entered the deal through a wholly owned subsidiary. It also closed another financing of $309 million securitization, announced on August 4, 2014. It was completed through another wholly owned subsidiary.
The first financing
The first financing is done with the MetLife Facility which is a secured funding facility. A financing of $180 million will be used to finance commercial real estate loans. It will come with an initial maturity date of August 12, 2017. It can be further renewed for one year as per the conditions. The renewal can be repeated again next year.
The second financing
The second financing of $309 million securitization was closed on August 15, 2014. The investment grade bonds exchanged hands at the closing. It was bought by the third parties at weighted average coupon rate of LIBOR plus 145 basis points before expenses. The $309 million securitization deal was of ACRE Commercial Mortgage FL2014-2.
The borrowing capacity
ACRE has got almost $1.7 billion of borrowing capacity available from various set of sources. The figure is as of June 30, 2014 and as per the pro forma related to the closing of the City National Bank credit facility, announced on July 31, 2014, $309 million securitization and the $180 million MetLife Facility. Ares Commercial Real Estate Corp (NYSE:ACRE) has got the borrowing capacity coming from the sources like insurance companies, capital markets and the commercial banks that will support expansion of its loan portfolio.
The management views
Todd Schuster, President and the CEO of Ares Commercial Real Estate Corp (NYSE:ACRE) calls the financing transactions as a means to underscore the company’s commitment in expanding its funding sources. Diversifying the funding sources makes the solid base for the growth of business. ACRE provides flexible solutions to its borrowers and at the same time delights the shareholders with attractive returns.
