Business Context and Reporting Period
Company: Ares Commercial Real Estate Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: July 13, 2016
Event Date: July 13, 2016
This filing reports a material definitive agreement entered into by ACRC Lender C LLC, a subsidiary of the registrant, regarding its financing arrangements.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. The primary financial metric disclosed relates to debt capacity:
- Existing Facility: $250 million master repurchase facility (the "CitiBank Facility").
- Counterparty: Citibank, N.A.
- Subsidiary Borrower: ACRC Lender C LLC.
Material Changes
On July 13, 2016, the company amended its existing $250 million master repurchase facility. The material change is the addition of an accordion feature to the terms of the facility. This feature typically allows the borrower to increase the size of the credit facility under certain conditions, though specific expansion limits are not detailed in this summary.
Guidance, Outlook, and Risks
Management Commentary: The filing provides a summary of the amendment and incorporates the full agreement by reference as Exhibit 10.1. No forward-looking guidance or outlook is provided in this specific report.
Risks and Contingencies: The filing notes the creation of a direct financial obligation or obligation under an off-balance sheet arrangement via the amendment, referencing Item 1.01 for details. No specific new risks are enumerated beyond the standard obligations of the amended facility.
Investor Verification Checklist
- Review Exhibit 10.1 (Second Amendment to Master Repurchase Agreement) to determine the specific terms, limits, and conditions of the newly added accordion feature.
- Verify the impact of the amendment on the company's total debt capacity and leverage ratios.
- Confirm any covenants or financial maintenance requirements associated with the expanded facility.