Ares Commercial Real Estate Corp Files 8-K on Financial Obligations

TL;DR

ACRE filed an 8-K on Dec 31, 2024, detailing new financial obligations. Watch for details.

AI Summary

On December 31, 2024, Ares Commercial Real Estate Corporation entered into a material definitive agreement related to financial obligations. The filing indicates the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant.

Why It Matters

This filing signals a significant financial commitment or arrangement for Ares Commercial Real Estate Corp, potentially impacting its balance sheet and future financial flexibility.

Risk Assessment

Risk Level: medium — The filing concerns material definitive agreements and financial obligations, which inherently carry financial risk that needs further investigation.

Key Players & Entities

• Ares Commercial Real Estate Corporation (company) — Registrant
• December 31, 2024 (date) — Date of earliest event reported
• Maryland (jurisdiction) — State of Incorporation
• 212-750-7300 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share ACRE New York Stock
• $425 million — cility amount may be increased to up to $425 million by up to two increments of $50 million
• $50 million — $425 million by up to two increments of $50 million with the consent of Citibank, N.A., sub

Filing Documents

• acre-20241231.htm (8-K) — 29KB
• acre-20241231_g1.jpg (GRAPHIC) — 195KB
• 0001628280-25-000760.txt ( ) — 657KB
• acre-20241231.xsd (EX-101.SCH) — 2KB
• acre-20241231_lab.xml (EX-101.LAB) — 23KB
• acre-20241231_pre.xml (EX-101.PRE) — 13KB
• acre-20241231_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

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. 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: January 7, 2025 /s/ Jeffrey Gonzales Name: Jeffrey Gonzales Title: Chief Financial Officer and Treasurer 3