SEC Filing Summary: Ares Commercial Real Estate Corp (8-K)
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Ares Commercial Real Estate Corporation on October 3, 2017, reporting events occurring on October 2, 2017. The registrant is identified as an emerging growth company. The filing focuses on a material amendment to a specific financing facility rather than a comprehensive periodic financial report.
Key Financial Metrics
The filing does not provide consolidated revenue, profit, cash flow, or margin data. The specific financial metric disclosed relates to a credit facility:
- Facility Name: Amended and Restated Bridge Loan Warehousing Credit and Security Agreement (BAML Facility).
- Facility Size: $125 million.
- Borrower: ACRC Lender B LLC (a subsidiary of the registrant).
- Lender: Bank of America, N.A.
- Revised Interest Rate: One-month LIBOR plus 2.00%.
Material Changes
The primary material change is the execution of Amendment No. 2 to the BAML Facility. This amendment specifically decreased the interest rate applicable to advances under the facility to one-month LIBOR plus 2.00%. No other material changes to financial position or operations are detailed in this document.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or discussion of general risks and contingencies. The document is strictly a disclosure of the entry into a material definitive agreement regarding the cost of debt for the warehousing facility.
Investor Verification Checklist
- Verify the full terms of Amendment No. 2 by reviewing Exhibit 10.1 attached to the filing.
- Confirm the impact of the reduced interest rate (LIBOR + 2.00%) on the company's overall cost of debt and net interest margin.
- Check subsequent filings for any utilization of the $125 million facility under the new terms.
- Note that this filing does not contain updated consolidated financial statements; refer to the most recent 10-Q or 10-K for broader financial health.