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Ares Commercial Real Estate Corporation Announces Commencement of Common Stock Offering

By on May 17, 2022 0

NEW YORK–(BUSINESS WIRE)–Ares Commercial Real Estate Corporation (the “Company”) (NYSE: ACRE) today announced the launch of a public offering of 7,000,000 common shares. The Company expects to grant the underwriters of the offering an option to purchase up to an additional 1,050,000 common shares.

The Company intends to use all net proceeds of the offering for general corporate purposes, including (i) investing in mortgages and other target assets and investments in accordance with its investment strategies and its investment guidelines (ii) financing commitments on existing mortgage loans and (iii) repaying debt.

Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and UBS Securities LLC are the joint bookrunners of the offering, and JMP Securities, A corporate citizenKeefe, Bruyette & Woods, A Stifel companyRaymond James & Associates, Inc., R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC are co-managers of the offering.

A registration statement on Form S-3 relating to these securities has been filed with the Securities and Exchange Commission and has been declared effective. The offering may only be made by means of a preliminary prospectus supplement and an accompanying prospectus. A copy of the preliminary prospectus supplement and accompanying offering prospectus may be obtained free of charge by visiting the Securities and Exchange Commission’s website at http://www.sec.gov or by contacting: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 30 Hudson Yards, 500 West 33rd Street – 14th Floor, New York, NY 10001, by phone at 1-800-326-5897 or by email at [email protected] com; Citigroup Global Markets Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by phone at 1-800-831-9146 or by email at [email protected]; or UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, New York 10019, by phone at 1-888-827-7275 or by email at [email protected]

This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor an offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale is illegal. Nothing in this press release constitutes an offer to sell or the solicitation of an offer to buy securities of the Company or any investment fund managed by the Company or its affiliates.


Ares Commercial Real Estate Corporation is a specialty finance company principally engaged in originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company offers a wide range of flexible and reliable financing solutions to owners and operators of commercial properties. The Company issues first mortgage loans, as well as subordinate financing, mezzanine debt and preferred equity, with a focus on providing value-added financing on a variety of properties located in liquid markets. Ares Commercial Real Estate Corporation has been selected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation.


Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. , which relate to future events or the future performance or financial condition of the Company. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those contained in forward-looking statements due to a number of factors, including current and future investment returns, repayment rates and prepayments of the Company’s mortgages, availability of investment opportunities, the Company’s ability to create additional investments and the completion of pending investments, the availability of capital, the availability and cost of financing, market trends and conditions in the the Company and the general economy, the level of lending and borrowing spreads and interest rates, commercial real estate lending volumes, the impact of the COVID-19 pandemic and the impact of the pandemic on the U.S. and global economy, the impact of Russia’s invasion of Ukraine, and the response of the international community have created, and may continue to create er, significant political and economic disruptions, uncertainty and risk, the Company’s ability to pay future dividends at historic levels or at all, and the risks described from time to time in documents filed by the Company with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risk factors described in Part I, Section 1A. Risk Factors in the Company’s Annual Report on Form 10-K, filed with the SEC on February 15, 2022. Any forward-looking statements, including those contained herein, speak only as of the time of this press release and Ares Commercial Real Estate Corporation assumes no obligation to update any forward-looking statements made herein. Projections and forward-looking statements are based on the good faith of management and on reasonable assumptions, including the assumptions described herein.