Ares Commercial enters $50 million bridge loan with Bank of America

By Marisa Wong

Madison, Wis., June 2 – Ares Commercial Real Estate Corp., through subsidiary ACRC Lender B LLC, entered into a $50 million bridge loan warehousing credit and security agreement with Bank of America, NA on May 29, according to an 8-K filing with the Securities and Exchange Commission.

Individual advances under the facility generally have a two-year maturity, subject to a one-year extension. The final maturity date of the facility is May 26, 2019.

Advances will accrue interest at one-month Libor plus a spread ranging from 225 basis points to 275 bps, depending upon the type of asset securing the advance.

The facility contains mandatory prepayment events if specified coverage ratio or other credit-based tests are not met with respect to the related eligible assets.

The agreement requires the company to maintain ratios of debt to net worth, fixed charges and other financial conditions.

Ares Commercial is a Chicago-based specialty finance company that invests in and manages middle-market commercial real estate loans and other commercial real estate investments.

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