MergerAug 4, 2026, 06:48 AM
ACRES Commercial Realty to Complete Merger & Internalization Aug 6
AI Summary
ACRES Commercial Realty Corp. (ACR) announced the expected completion of its merger with ACRES Capital Corp. (ACC) and the internalization of its manager, ACRES Capital LLC, on August 6, 2026. As part of the merger, ACR will issue 7,478,994 shares of its common stock. Concurrently, ACR will assume an existing ACC credit facility with approximately $185.0 million outstanding and plans a private placement of $200 million 8.625% Senior Secured Notes due 2031. The proceeds from these new notes will be used to repay $150 million of existing Senior Unsecured Notes and for general corporate purposes.
Key Highlights
- Merger and internalization expected to complete on August 6, 2026.
- ACR to issue 7,478,994 shares of common stock as merger consideration.
- ACR will acquire ACRES Capital LLC and become internally managed.
- ACR to assume ACC credit facility with approximately $185.0 million outstanding.
- Private placement of $200 million 8.625% Senior Secured Notes due 2031.
- Proceeds from new notes to repay $150 million 5.75% Senior Unsecured Notes.
- New Senior Secured Notes expected to receive an investment grade rating.
- New Notes bear 8.625% interest, payable semi-annually starting Jan 31, 2027.
Price Impact
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