NEW YORK--(BUSINESS WIRE)--Nov. 6, 2017--
Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”)
(NYSE:ARI), today announced the Company has commenced a public offering
of $75,000,000 aggregate principal amount of its 4.75% Convertible
Senior Notes due 2022 (the “Notes”) pursuant to a reopening of its
existing series of such Notes. The Company also plans to grant to the
underwriters a 13-day option to purchase up to an additional $11,250,000
aggregate principal amount of the Notes at the public offering price,
less the underwriting discount, plus accrued interest.
The Notes will bear interest at a rate equal to 4.75% per year, payable
semiannually in arrears on February 15 and August 15 of each year,
beginning on February 15, 2018. However, the final interest payment date
will occur on August 23, 2022, and no interest payment date will occur
on August 15, 2022. The conversion rate will initially equal 50.2260
shares of common stock per $1,000 principal amount of Notes, which is
equivalent to a conversion price of approximately $19.91 per share of
common stock. The initial conversion rate is subject to adjustment upon
the occurrence of certain events, but will not be adjusted for any
accrued and unpaid interest. Upon conversion, the Company will pay or
deliver, as the case may be, cash, shares of the Company's common stock
or a combination of cash and shares of common stock, at its election.
The Notes will mature on August 23, 2022, unless earlier redeemed,
repurchased or converted.
ARI intends to use all or a portion of the net proceeds from the
offering to acquire or originate the Company's target assets, which
include commercial first mortgage loans, subordinate financings,
commercial mortgage backed securities (“CMBS”) and other commercial real
estate-related debt investments, and for working capital and other
general corporate purposes. Pending such uses, ARI may use a portion of
the net proceeds from this offering to temporarily reduce borrowings
under its repurchase agreements (excluding repurchase agreements secured
by the Company's CMBS portfolio).
Morgan Stanley, BofA Merrill Lynch, Citigroup, and J.P. Morgan are the
joint book-running managers for the offering. Deutsche Bank Securities,
JMP Securities and Keefe, Bruyette & Woods, Inc., A Stifel Company,
are the co-managers for the offering.
A registration statement relating to these securities has become
effective under the Securities Act of 1933, as amended. The offering
will be made only by means of a preliminary prospectus supplement and
accompanying prospectus, which have been filed with the Securities and
Exchange Commission. When available, a copy of the preliminary
prospectus supplement and accompanying prospectus related to the
offering can be obtained by contacting Morgan Stanley, Attention:
Prospectus Department, 180 Varick Street, Second Floor, New York, NY
10014; BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd
Floor, Charlotte, NC 28255-0001, Attention: Prospectus Department,
Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717 or by calling 800-831-9146; or J.P. Morgan Securities
LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717, Attention: Prospectus Department, or by calling
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of any securities in any state or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or other
About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) is a real estate
investment trust that primarily originates, invests in, acquires and
manages performing commercial real estate first mortgage loans,
subordinate financings, commercial mortgage-backed securities and other
commercial real estate-related debt investments. The Company is
externally managed and advised by ACREFI Management, LLC, a Delaware
limited liability company and an indirect subsidiary of Apollo Global
Management, LLC, a leading global alternative investment manager with
approximately $242 billion of assets under management as of September
Certain statements contained in this press release constitute
forward-looking statements as such term is defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and such statements are intended to be
covered by the safe harbor provided by the same. Forward-looking
statements are subject to substantial risks and uncertainties, many of
which are difficult to predict and are generally beyond the Company's
control. These forward-looking statements include information about
possible or assumed future results of the Company's business, financial
condition, liquidity, results of operations, plans and objectives. When
used in this release, the words "believe," "expect," "anticipate,"
"estimate," "plan," "continue," "intend," "should," "may" or similar
expressions are intended to identify forward-looking statements.
Statements regarding the following subjects, among others, may be
forward-looking: the return on equity; the yield on investments; the
ability to borrow to finance assets; and risks associated with investing
in real estate assets, including changes in business conditions and the
general economy. For a further list and description of such risks and
uncertainties, see the reports filed by the Company with the Securities
and Exchange Commission. The forward-looking statements, and other
risks, uncertainties and factors are based on the Company's beliefs,
assumptions and expectations of its future performance, taking into
account all information currently available to the Company.
Forward-looking statements are not predictions of future events. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
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Source: Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc.
Ginsberg, (212) 822-0767