Ares Commercial Real Estate Corporation filed SEC Form 8-K: Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation
$ACRE
Real Estate Investment Trusts
Real Estate
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_____________________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 31, 2024
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Item 1.01 Entry into a Material Definitive Agreement.
On December 31, 2024, ACRC Lender C LLC (“ACRC Lender C”), a subsidiary of Ares Commercial Real Estate Corporation (the “Company”), and the Company entered into an amendment to the Master Repurchase Agreement (the “Citi Facility”) with Citibank, N.A. The purpose of the amendment is to, among other things, extend the current facility expiration date and funding availability period of the Citi Facility for two years, until January 13, 2027. The facility expiration date continues to be subject to two 12-month extensions, each of which may be exercised at ACRC Lender C’s option, assuming no existing defaults under the Citi Facility and applicable extension fees being paid, which, if both were exercised, would extend the maturity date of the Citi Facility to January 13, 2029. The amendment also includes an accordion provision such that the facility amount may be increased to up to $425 million by up to two increments of $50 million with the consent of Citibank, N.A., subject to the satisfaction of certain conditions, including payment of an upsize fee.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information required by Item 2.03 contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ARES COMMERCIAL REAL ESTATE CORPORATION | |||||||||||
| Date: | January 7, 2025 | /s/ Jeffrey Gonzales | |||||||||
| Name: | Jeffrey Gonzales | ||||||||||
| Title: | Chief Financial Officer and Treasurer | ||||||||||
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