Ares Commercial Real Estate Corporation Announces Launch of Offering of Common Stock
May 17 2022 - 4:32PM
Business Wire
Ares Commercial Real Estate Corporation (the “Company”)
(NYSE:ACRE) announced today the launch of an underwritten public
offering of 7,000,000 shares of common stock. The Company expects
to grant to the underwriters of the offering an option to purchase
up to 1,050,000 additional shares of common stock.
The Company intends to use all of the net proceeds from the
offering for general corporate purposes, including (i) investing in
mortgage loans and other target assets and investments consistent
with its investment strategies and investment guidelines (ii)
funding commitments on existing mortgage loans and (iii) repaying
indebtedness.
Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC,
Citigroup Global Markets Inc. and UBS Securities LLC are joint book
running managers for the offering, and JMP Securities, A Citizens
Company, Keefe, Bruyette & Woods, A Stifel Company, Raymond
James & Associates, Inc., R. Seelaus & Co., LLC and Siebert
Williams Shank & Co., LLC 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 preliminary prospectus supplement and
accompanying prospectus. A copy of the preliminary prospectus
supplement and accompanying prospectus related to the offering can
be obtained 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, by telephone at
1-800-326-5897 or by email at cmclientsupport@wellsfargo.com;
Citigroup Global Markets Inc. c/o Broadridge Financial Solutions,
1155 Long Island Avenue, Edgewood, NY 11717, by telephone at
1-800-831-9146 or by email at prospectus@citi.com; or UBS
Securities LLC, Attention: Prospectus Department, 1285 Avenue of
the Americas, New York, New York 10019, by telephone at
1-888-827-7275 or by email at ol-prospectusrequest@ubs.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. 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 impact of
Russia’s invasion of Ukraine and the international community’s
response have created, and may continue to create, substantial
political and economic disruption, uncertainty and risk, 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 15, 2022. 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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Ares Commercial Real Estate Corporation Carl Drake or John
Stilmar (888) 818-5298 iracre@aresmgmt.com
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