Ares Commercial Real Estate tumbles after pricing $105 mln stock offering

Ares Commercial Real Estate

18/05/2022 11:28

** Ares Commercial Real Estate  ACRE.N  shares down >6%
premarket, threatening to snap 3-session winning streak, after
follow-on prices
    ** Mortgage REIT externally managed by Ares Management
 ARES.N  subsidiary sold 7 mln shares for $104.7 mln raise
 urn:newsml:reuters.com:*:nBw7c3vbRa
    ** Offering priced at $14.95, 4.4% discount to stock's Tues
close
    ** ACRE reported its book value/sh was $14.54 as of Mar 31
    ** Co to use net offering proceeds for general corp
purposes, including investing in mortgage loans and repaying
debt
    ** Offering size represents ~15% of co's total shares
outstanding, per Refinitiv data
    ** Morgan Stanley, Wells Fargo, Citi, and UBS jt bookrunners
    ** YTD, shares have risen 7.5% through close on Tues vs S&P
500's  .SPX  14% decline

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))