Item 8.01. Other Events.
On January 30, 2020, in connection with the previously announced underwriting
agreement (the "Underwriting Agreement") dated January 22, 2020 by and among
Ares Commercial Real Estate Corporation (the "Company"), Ares Commercial Real
Estate Management LLC, the Company's external manager, and Wells Fargo
Securities, LLC, Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC, as
representatives of the several underwriters listed therein (collectively, the
"Underwriters"), the Company sold an aggregate of 600,000 shares of the
Company's common stock, par value $0.01 per share to the Underwriters pursuant
to the terms of the Underwriting Agreement. The shares were issued in connection
with the exercise in full by the Underwriters of their 30-day option to purchase
up to an additional 600,000 shares pursuant to the terms of the Underwriting
Agreement.
The sale of additional shares closed on January 30, 2020 and generated net
proceeds of approximately $9.5 million after deducting estimated transaction
expenses. Pursuant to the Underwriting Agreement, the Company has agreed,
subject to certain exceptions, not to sell or transfer any shares of its common
stock or any securities convertible into or exercisable or exchangeable for
common stock for 45 days after January 22, 2020 without first obtaining the
written consent of the Underwriters.
The offering was made pursuant to the Company's effective shelf registration
statement on Form S-3 (File No. 333-232742), which was originally filed with the
Securities and Exchange Commission on July 19, 2019, and the related prospectus
supplement and accompanying prospectus.
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