Apollo Commercial gets commitment for $200 million 364-day term loans

By Angela McDaniels

Tacoma, Wash., Feb. 26 – Apollo Commercial Real Estate Finance, Inc. said Athene USA Corp. has committed to provide up to $200 million of term loans to the company to fund its acquisition of Apollo Residential Mortgage, Inc.

The interest rate will be Libor plus 700 basis points, according to an 8-K filing with the Securities and Exchange Commission.

The loans will mature within 364 days of funding and will be secured by liens on the equity interests of, and guaranteed by, some of Apollo Commercial’s subsidiaries.

The loan commitment will be reduced, and any loans made thereunder are required to be repaid, by 100% of the net cash proceeds from the sale of non-agency residential mortgage-backed securities and 100% of the net proceeds from any issuance of debt by the company and its subsidiaries.

Apollo Commercial Real Estate Finance is a real estate investment trust that originates, invests in, acquires and manages performing commercial real estate-related debt. Apollo Residential Mortgage is a REIT that invests in and manages residential mortgage-backed securities. Each is externally managed and advised by an indirect subsidiary of Apollo Global Management, LLC.

Athene USA Corp. is a subsidiary of Athene Holding Ltd. It acts as the U.S. holding company for Athene’s annuity operations in the United States and is based in West Des Moines, Iowa.

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