MergerAug 6, 2026, 04:38 PM
ACRES Commercial Realty Completes Merger, Internalization & $200M Notes
AI Summary
ACRES Commercial Realty Corp. announced the completion of its merger with ACRES Capital Corp., transitioning to an internally-managed REIT. This strategic move involved issuing approximately 7.5 million common shares to ACC stockholders. Concurrently, the company completed a private placement of $200 million 8.625% Senior Secured Notes due 2031, with proceeds primarily used to repay $150 million of existing unsecured notes. Additionally, the company's subsidiaries entered into an amended $185 million credit facility at a fixed rate of 8.749% maturing in 2033.
Key Highlights
- Completed merger with ACRES Capital Corp. and transitioned to an internally-managed REIT.
- Issued approximately 7.5 million ACR common shares to ACC stockholders as merger consideration.
- Net increase of approximately 6.3 million ACR common shares outstanding after consolidation.
- Completed private placement of $200 million 8.625% Senior Secured Notes due 2031.
- Notes proceeds will repay $150 million of 5.75% Senior Unsecured Notes maturing in August 2026.
- Entered into a $185 million credit facility at a fixed interest rate of 8.749% due July 2033.
- The $200 million Senior Secured Notes were rated investment grade by Kroll Bond Rating Agency.
Price Impact
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