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Ares Commercial indirect units issue more notes under 2017 securitization

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Ares Commercial indirect units issue more notes under 2017 securitization

Ares Commercial Real Estate Corp. indirect subsidiaries ACRE Commercial Mortgage 2017-FL3 Ltd. and ACRE Commercial Mortgage 2017-FL3 LLC have issued additional class A, class A-S, class B, class C and class D notes to a third party.

Under an amended indenture, the previous securitization was updated to govern about $504.1 million of secured floating-rate notes issued by ACRE Commercial Mortgage 2017-FL3 Ltd. and $52.9 million of preferred equity in that entity, compared with the previous $308.8 million of notes and $32.4 million of preferred equity.

Interests in a pool of 17 mortgage assets with an aggregate principal balance of about $557.0 million, including six additional mortgage assets with a balance of about $228.8 million, collateralize the notes. In connection with the new securitization, the ACRE Commercial Mortgage entities offered and issued $172.7 million of additional notes to a third party. The total balance of offered notes is now about $445.6 million, with an initial weighted average coupon of LIBOR plus 1.70%.

An Ares Commercial unit retained about $58.5 million of the notes and all of the $52.9 million of preferred equity in ACRE Commercial Mortgage 2017-FL3 Ltd.