Ares Commercial Real Estate Corporation Announces Pricing of Offering of Common Stock
March 16 2021 - 6:30AM
Business Wire
Ares Commercial Real Estate Corporation (the “Company”)
(NYSE:ACRE), today announced the pricing of an underwritten public
offering of 7,000,000 shares of common stock for total estimated
gross proceeds of approximately $101.9 million.
The Company has also granted the underwriters an option for 30
days to purchase up to an additional 1,050,000 shares of common
stock. The offering is expected to close on or about March 17,
2021, subject to customary closing conditions. The Company intends
to use all of the net proceeds from the offering for general
corporate purposes, including repaying indebtedness and investing
in mortgage loans and other target assets and investments
consistent with its investment strategies and investment guidelines
and funding commitments on existing mortgage loans.
Morgan Stanley, Wells Fargo Securities and BofA Securities are
joint book running managers for the offering, and JMP Securities,
Keefe, Bruyette & Woods, A Stifel Company and Raymond James are
co-managers for the offering.
A registration statement on Form S-3 relating to these
securities has been filed with the Securities and Exchange
Commission and has been declared effective. The offering may be
made only by means of a prospectus supplement and accompanying
prospectus. A copy of the final prospectus supplement and
accompanying prospectus related to the offering can be obtained,
when available, for free by visiting the Securities and Exchange
Commission’s website at http://www.sec.gov or by contacting: Morgan
Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick
Street, 2nd Floor, New York, NY 10014; Wells Fargo Securities, LLC,
Attention: Equity Syndicate Department, 30 Hudson Yards, 500 West
33rd Street - 14th Floor, New York, NY 10001 or by telephone at
1-800-326-5897 or by email at cmclientsupport@wellsfargo.com; or
BofA Securities, NC1-004-03-43, 200 North College Street, 3rd
floor, Charlotte, NC 28255-0001, Attn: Prospectus Department or by
email at dg.prospectus_requests@bofa.com.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor does it
constitute an offer, solicitation or sale of these securities in
any jurisdiction in which such offer, solicitation or sale is
unlawful. Nothing in this press release constitutes an offer to
sell or solicitation of an offer to buy any securities of the
Company or an investment fund managed by the Company or its
affiliates.
ABOUT ARES COMMERCIAL REAL ESTATE CORPORATION
Ares Commercial Real Estate Corporation is a specialty finance
company primarily engaged in originating and investing in
commercial real estate loans and related investments. Through its
national direct origination platform, the Company provides a broad
offering of flexible and reliable financing solutions for
commercial real estate owners and operators. The Company originates
senior mortgage loans, as well as subordinate financings, mezzanine
debt and preferred equity, with an emphasis on providing value
added financing on a variety of properties located in liquid
markets across the United States. Ares Commercial Real Estate
Corporation elected and qualified to be taxed as a real estate
investment trust and is externally managed by a subsidiary of Ares
Management Corporation.
FORWARD-LOOKING STATEMENTS Statements included herein may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities and Exchange Act of 1934, as amended, which relate to
future events or the Company’s future performance or financial
condition. These statements are not guarantees of future
performance, condition or results and involve a number of risks and
uncertainties. Actual results may differ materially from those in
the forward-looking statements as a result of a number of factors,
including the returns on current and future investments, rates of
repayments and prepayments on the Company’s mortgage loans,
availability of investment opportunities, the Company’s ability to
originate additional investments and completion of pending
investments, the availability of capital, the availability and cost
of financing, market trends and conditions in the Company’s
industry and the general economy, the level of lending and
borrowing spreads and interest rates, commercial real estate loan
volumes, the impact of the COVID-19 pandemic and the pandemic's
impact on the U.S. and global economy, the Company’s ability to pay
future dividends at historical levels or at all, and the risks
described from time to time in the Company’s filings with the
Securities and Exchange Commission (the “SEC”), including, but not
limited to, the risk factors described in Part I, Item 1A. Risk
Factors in the Company's Annual Report on Form 10-K, filed with the
SEC on February 18, 2021. Any forward-looking statement, including
any contained herein, speaks only as of the time of this press
release and Ares Commercial Real Estate Corporation undertakes no
duty to update any forward-looking statements made herein.
Projections and forward-looking statements are based on
management’s good faith and reasonable assumptions, including the
assumptions described herein.
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INVESTOR RELATIONS Ares Commercial Real Estate
Corporation Carl Drake or Veronica Mendiola Mayer (888) 818-5298
iracre@aresmgmt.com
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