Ares Commercial Real Estate subsidiary gets $75 million facility

By Angela McDaniels

Tacoma, Wash., July 31 – Ares Management, LP subsidiary Ares Management LLC agreed on Wednesday to provide credit support to a new $75 million credit facility entered into by a wholly owned subsidiary of Ares Commercial Real Estate Corp. with City National Bank, according to an 8-K filing with the Securities and Exchange Commission.

Ares Management LLC is the parent entity to Ares Commercial Real Estate’s external manager.

In connection with the facility, Ares Management LLC agreed to purchase all loans and other obligations outstanding under the facility at par if the facility is accelerated, certain events of default occur or, among other things, Ares Management LLC’s corporate credit rating is downgraded to below investment grade.

Ares Commercial Real Estate will pay Ares Management LLC a credit support fee of 1.5% per year of the average principal amount of the loans outstanding under the facility, payable monthly, and reimburse Ares Management LLC for its out-of-pocket expenses.

Ares Management is a Los Angeles-based asset manager.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.