Ares Commercial Real Estate entered into an agreement to increase its existing term loan from $60 million to $150 million, reduce the all-in pricing from LIBOR plus 5.75% to an initial fixed rate of 4.50% and extend the initial maturity to November 2026.
In addition, the company increased the size of its secured revolving facility with City National Bank (CNB) from $50 million to $75 million. Collectively, Ares will use the term loan and the CNB facility to fund new loan originations, increase its investment portfolio and for other working capital and general corporate purposes.
“The increases in the term loan and the CNB facility provide us with strategically important and attractive financing to support the growth in our investment activity and help us to achieve our target leverage levels and enhance our earnings,” Bryan Donohoe, CEO of Ares Commercial Real Estate, said. “Utilizing the internal resources of our manager, we were able to execute both financing transactions directly, resulting in significant cost savings to ACRE.”