Business Context and Reporting Period
This Form 8-K Current Report was filed by Ares Commercial Real Estate Corporation on May 26, 2016. The filing discloses a material definitive agreement entered into by ACRC Lender B LLC, a subsidiary of the registrant, regarding its financing arrangements.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, or liquidity metrics. The primary financial data point disclosed is the size of the credit facility involved in the amendment:
- Credit Facility Size: $50.0 million (Bridge Loan Warehousing Credit and Security Agreement).
- Lender: Bank of America, N.A.
Material Changes
The registrant amended the BAML Facility on May 26, 2016, resulting in the following changes:
- Commitment Period Extension: The period during which the subsidiary may request individual loans under the facility was extended to May 25, 2017.
- Maturity Date Extension: The final maturity date of the facility was extended by 12 months to May 25, 2020.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or specific risk factors beyond the standard disclosure that the summary is qualified by reference to the full agreement filed as Exhibit 10.1. No unusual items or contingencies were reported in this document.
Investor Verification Checklist
- Verify the terms of Amendment No. 3 to the Bridge Loan Warehousing Credit and Security Agreement (Exhibit 10.1) for any covenants or interest rate adjustments not summarized in the text.
- Confirm the current utilization rate of the $50.0 million facility to assess immediate liquidity needs.
- Review subsequent filings to determine if the extended maturity date impacts the company's long-term debt schedule.