ACRE Files 8-K on Material Agreement & Financial Obligation

Ticker: ACRE · Form: 8-K · Filed: 2024-02-06T00:00:00.000Z

Sentiment: neutral

Topics: material-agreement, debt, financial-obligation

TL;DR

**ACRE just took on a new material financial obligation, watch for details.**

AI Summary

Ares Commercial Real Estate Corporation (ACRE) filed an 8-K on February 6, 2024, reporting an event that occurred on January 31, 2024. The filing indicates the company entered into a material definitive agreement and created a direct financial obligation or an off-balance sheet arrangement. This matters to investors because such agreements and obligations can significantly impact the company's financial health, future earnings, and overall risk profile, potentially affecting stock valuation.

Why It Matters

This filing signals a new financial commitment or agreement for Ares Commercial Real Estate Corporation, which could alter its balance sheet and future cash flows, directly impacting shareholder value.

Risk Assessment

Risk Level: medium — The filing indicates a new material definitive agreement and financial obligation, the specifics of which are not detailed, creating uncertainty and potential risk.

Analyst Insight

Investors should monitor subsequent filings or press releases from Ares Commercial Real Estate Corporation for specific details regarding the material agreement and financial obligation to assess their potential impact on the company's financial health and stock performance.

Key Players & Entities

Forward-Looking Statements

FAQ

What was the specific nature of the 'Material Definitive Agreement' entered into by Ares Commercial Real Estate Corporation?

The filing indicates an 'Entry into a Material Definitive Agreement' but does not provide specific details about the nature or terms of this agreement. Further information would be needed to understand its specifics.

What kind of 'Direct Financial Obligation' or 'Off-Balance Sheet Arrangement' did Ares Commercial Real Estate Corporation create?

The 8-K states the 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant' but does not elaborate on the type, amount, or terms of this obligation. This information is crucial for assessing its financial impact.

When did the earliest event reported in this 8-K filing occur?

The earliest event reported in this 8-K filing occurred on January 31, 2024, as stated in the 'Date of report (Date of earliest event reported)' section.

What is the trading symbol and exchange for Ares Commercial Real Estate Corporation's common stock?

Ares Commercial Real Estate Corporation's common stock trades under the symbol ACRE on the New York Stock Exchange, as indicated in the 'Securities registered pursuant to Section 12(b) of the Act' section.

What is the primary business address of Ares Commercial Real Estate Corporation?

The primary business address of Ares Commercial Real Estate Corporation is 245 Park Avenue, 42nd Floor, New York, NY 10167, as listed in the 'BUSINESS ADDRESS' section of the filing.

Filing Stats: 684 words · 3 min read · ~2 pages · Grade level 13.1 · Accepted 2024-02-06 16:54:06

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On January 31, 2024, Ares Commercial Real Estate Corporation (the "Company"), as guarantor, and ACRC Lender LLC, a subsidiary of the Company (the "Borrower"), entered into an amendment to the secured revolving funding facility with City National Bank (the "CNB Facility"). The purpose of the amendment was to, among other things: (1) extend the initial maturity date of the CNB Facility to March 10, 2025, subject to one 12-month extension, which may be exercised at the Borrower's option if certain conditions described in the CNB Facility are met, including the payment of applicable extension fees; and (2) set the interest rate on advances under the CNB Facility to a per annum rate equal to the sum of, at the Borrower's option, either (a) a SOFR-based rate plus 3.25% or (b) a base rate plus 2.25%, in each case, subject to an interest rate floor. The foregoing description of the amendment to the CNB Facility is only a summary of the material provisions of the amendment and is qualified in its entirety by reference to a copy of such amendment, which is filed herewith as Exhibit 10.1, and by this reference incorporated herein. 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.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits: Exhibit Number Description 10.1 Amendment No. 9 to the Credit Agreement dated as of January 31, 2024, by and among, Ares Commercial Real Estate Corporation, as guarantor, ACRC Lender LLC, as borrower, City National Bank, a national banking association, as arranger and administrative agent, and the lenders party thereto. 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document 2 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: February 6, 2024 By: /s/ Anton Feingold Name: Anton Feingold Title: General Counsel, Vice President and Secretary 3

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