Apollo Commercial Real Estate Finance, Inc. (the “Company” or
“ARI”) (NYSE:ARI), today announced the pricing of its public
offering of $100,000,000 aggregate principal amount of its 4.75%
Convertible Senior Notes due 2022 (the “Notes”) for total gross
proceeds of $100,500,000, excluding accrued interest. The
Notes were priced at 100.5% of face value plus accrued interest
from, and including, August 21, 2017. The Notes are an
additional issuance of, and will be fully fungible and form a
single series with, the $230,000,000 aggregate principal
amount of the Company's 4.75% Convertible Senior Notes due 2022
issued in August 2017 and will have the same CUSIP number. The
Company has granted to the underwriters a 13-day option to purchase
up to an additional $15,000,000 aggregate principal amount of the
Notes at the public offering price, less the underwriting discount,
plus accrued interest.
The Notes will bear interest at a rate equal to 4.75% per year,
payable semiannually in arrears on February 15 and August 15 of
each year, beginning on February 15, 2018. However, the final
interest payment date will occur on August 23, 2022, and no
interest payment date will occur on August 15, 2022. The conversion
rate will initially equal 50.2260 shares of common stock per $1,000
principal amount of Notes, which is equivalent to a conversion
price of approximately $19.91 per share of common stock. The
initial conversion rate is subject to adjustment upon the
occurrence of certain events, but will not be adjusted for any
accrued and unpaid interest. Upon conversion, we will pay or
deliver, as the case may be, cash, shares of our common stock or a
combination of cash and shares of our common stock, at our
election. The Notes will mature on August 23, 2022, unless earlier
redeemed, repurchased or converted. The offering is expected to
close on or about November 9, 2017, subject to customary closing
conditions.
ARI intends to use all or a portion of the net proceeds from the
offering to acquire or originate the Company's target assets, which
include commercial first mortgage loans, subordinate financings,
commercial mortgage backed securities (“CMBS”) and other commercial
real estate-related debt investments, and for working capital and
other general corporate purposes. Pending such uses, ARI may use a
portion of the net proceeds from this offering to temporarily
reduce borrowings under its repurchase agreements (excluding
repurchase agreements secured by the Company's CMBS portfolio).
Morgan Stanley, BofA Merrill Lynch, Citigroup, and J.P. Morgan
are the joint book-running managers for the offering. Deutsche Bank
Securities, JMP Securities and Keefe, Bruyette & Woods, Inc., A
Stifel Company, are the co-managers for the offering.
A registration statement relating to these securities has become
effective under the Securities Act of 1933, as amended. The
offering will be made only by means of a prospectus supplement and
accompanying prospectus, which have been or will be filed with the
Securities and Exchange Commission. A copy of the final prospectus
supplement, when available, and accompanying prospectus related to
the offering can be obtained by contacting Morgan Stanley,
Attention: Prospectus Department, 180 Varick Street, Second Floor,
New York, NY 10014; BofA Merrill Lynch, NC1-004-03-43, 200 North
College Street, 3rd Floor, Charlotte, NC 28255-0001, Attention:
Prospectus Department, Email: dg.prospectus_requests@baml.com;
Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, NY 11717 or by calling 800-831-9146; or J.P.
Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155
Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus
Department, or by calling 866-803-9204.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of any securities in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or other jurisdiction.
About Apollo Commercial Real Estate Finance, Inc.Apollo
Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate
investment trust that primarily originates, invests in, acquires
and manages performing commercial real estate first mortgage loans,
subordinate financings, commercial mortgage-backed securities and
other commercial real estate-related debt investments. The Company
is externally managed and advised by ACREFI Management, LLC, a
Delaware limited liability company and an indirect subsidiary of
Apollo Global Management, LLC, a leading global alternative
investment manager with approximately $242 billion of assets under
management as of September 30, 2017.
Forward-Looking StatementsCertain statements contained in
this press release constitute forward-looking statements as such
term is defined in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and such statements are intended to be covered by the safe
harbor provided by the same. Forward-looking statements are subject
to substantial risks and uncertainties, many of which are difficult
to predict and are generally beyond the Company's control. These
forward-looking statements include information about possible or
assumed future results of the Company's business, financial
condition, liquidity, results of operations, plans and objectives.
When used in this release, the words "believe," "expect,"
"anticipate," "estimate," "plan," "continue," "intend," "should,"
"may" or similar expressions are intended to identify
forward-looking statements. Statements regarding the following
subjects, among others, may be forward-looking: the return on
equity; the yield on investments; the ability to borrow to finance
assets; and risks associated with investing in real estate assets,
including changes in business conditions and the general economy.
For a further list and description of such risks and uncertainties,
see the reports filed by the Company with the Securities and
Exchange Commission. The forward-looking statements, and other
risks, uncertainties and factors are based on the Company's
beliefs, assumptions and expectations of its future performance,
taking into account all information currently available to the
Company. Forward-looking statements are not predictions of future
events. The Company disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171107005632/en/
Apollo Commercial Real Estate Finance, Inc.Hilary
Ginsberg, 212-822-0767
Apollo Commercial Real E... (NYSE:ARI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Apollo Commercial Real E... (NYSE:ARI)
Historical Stock Chart
From Jul 2023 to Jul 2024