Reduces Cost of Borrowing

NEW YORK, NY, Jan 11, 2012 (MARKETWIRE via COMTEX) --Apollo Commercial Real Estate Finance, Inc. (the "Company") (NYSE: ARI) announced today that it utilized additional capacity under the Company's master repurchase agreement with Wells Fargo Bank, N.A. (the "Wells Facility") to refinance all of the Company's debt outstanding under the Term Asset-Backed Securities Loan Facility (the "TALF") program administered by the Federal Reserve Bank of New York.

Prior to the refinancing, the Company had TALF borrowings totaling $250.3 million with a weighted average cost of funds of 2.8%. Those borrowings were secured by AAA-rated commercial mortgage-backed securities ("CMBS") with a face amount of $298.6 million.

By moving the CMBS to the Wells Facility, the Company was able to increase the advance rate and lower the cost of borrowing, resulting in $264.4 million of borrowings with a current weighted average cost of funds of approximately 1.9%. The Company entered into interest rate swap agreements with an initial aggregate notional of $56.3 million.

Stuart Rothstein, Chief Financial Officer of the Company, commented, "By actively managing the right side of the Company's balance sheet, we were able to complete a transaction which generates approximately $14.0 million of investable capital and lowers the overall cost of borrowing. In addition, the Wells Facility extends the maturity of the Company's borrowings by five months and enables the Company to benefit to the extent loans underlying the CMBS bonds are extended."

As previously disclosed, the Company increased the size of the Wells Facility from $250.0 million to $506.0 million during December 2011. Borrowings resulting from the additional capacity will bear interest at a per annum rate of 30-day LIBOR plus 1.5%. The Wells Facility matures in August 2013.

About Apollo Commercial Real Estate Finance, Inc. Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a commercial real estate finance company that originates, invests in, acquires and manages senior performing commercial real estate mortgage loans, commercial mortgage-backed securities, and other commercial real estate-related debt investments in the U.S. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company, an indirect subsidiary of Apollo Global Management, LLC. Additional information can be found on the Company's website at www.apolloreit.com.

Forward-Looking Statements 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. 


CONTACT:
Stuart Rothstein
(212) 822-0722

SOURCE: Apollo Commercial Real Estate Finance, Inc.

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