Ares Commercial Real Estate Corp (NYSE:ACRE), currently trading near its 52-week low at $5.91, has modified its financial arrangements with Citibank, N.A., according to a regulatory filing on Tuesday. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.94, indicating solid short-term financial positioning.
The amendment to the Master Repurchase Agreement, known as the Citi Facility, includes an extension of the facility's expiration date and funding availability period by two years, now set to expire on January 13, 2027.
This adjustment to the Citi Facility also allows for two additional 12-month extensions, which could potentially extend the maturity date to January 13, 2029. These extensions are contingent upon the absence of defaults and the payment of applicable fees. The agreement includes an accordion feature that permits the facility amount to be increased by up to $425 million in two $50 million increments, subject to Citibank's consent and certain conditions, including an upsize fee.
The Citi Facility amendment signifies a continued relationship between Ares Commercial Real Estate, a Maryland-based real estate investment trust offering a substantial 16.45% dividend yield, and Citibank, offering the company extended financial flexibility. The details of the agreement were disclosed in a Form 8-K filed with the Securities and Exchange Commission.
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