Ares Commercial eyes $50 million three-year convertibles at 7%, up 15%

By Rebecca Melvin

New York, Dec. 13 - Ares Commercial Real Estate Corp. planned to price $50 million of three-year convertible senior notes before the market open Friday that were talked at a fixed 7% coupon and initial conversion premium of 15%, according to a market source.

The Rule 144A deal has a $7.5 million over-allotment option.

The notes will be non-callable and no puts.

Proceeds will be used to repay debt under the company's secured funding facilities and for other general corporate purposes, which includes investing in target assets in line with Ares' investment objectives.

Ares is a Chicago-based specialty finance company that operates as a real estate investment trust.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.