Ares Commercial Real Estate cuts tangible net worth floor to $400M

Only the Wells Fargo Facility includes 80% of net proceeds from future equity issuances in the revised minimum tangible net worth requirement.

Rhea-AI Filing Summary

Ares Commercial Real Estate Corp. (ACRE) and certain wholly owned subsidiaries amended three repurchase facilities on October 5, 2026, with Citibank, N.A., Morgan Stanley Bank, N.A., and Wells Fargo Bank, National Association. The amendments reduced the minimum tangible net worth requirement under each facility from $500 million to $400 million. For the Wells Fargo Facility only, the requirement also includes 80% of net proceeds from future equity issuances.

8-K Event Classification

2 items: 1.01, 2.03

2 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Key Figures

Prior minimum tangible net worth requirement: $500 million Amended minimum tangible net worth requirement: $400 million Net proceeds component: 80%

3 metrics

Prior minimum tangible net worth requirement $500 million Requirement under each facility before amendment

Amended minimum tangible net worth requirement $400 million Requirement under each facility after amendment

Net proceeds component 80% Applies to future equity issuance net proceeds under the Wells Fargo Facility

Key Terms

master repurchase facility, minimum tangible net worth requirement, net proceeds

3 terms

master repurchase facility financial

"master repurchase facility with Citibank, N.A."

A master repurchase facility is a standing lending arrangement in which a lender (often a central bank or large financial institution) provides short-term cash to counterparties in exchange for securities as collateral, with an agreement to buy the securities back later at a fixed price. It works like a secured short-term loan desk that supports market liquidity and short-term funding, and it matters to investors because it helps stabilize cash availability, influence short-term interest rates, and reduce dislocation in money markets.

minimum tangible net worth requirement financial

"minimum tangible net worth requirement under each facility"

net proceeds financial

"80% of the net proceeds from future equity issuances"

The amount of money a company actually keeps from a sale or fundraising after paying all direct costs and fees, similar to take-home pay after taxes and deductions. Investors care because net proceeds determine how much cash is available for things that affect value—paying debt, funding projects, buying assets, or returning money to shareholders—so it influences future growth potential and financial health.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did ACRE change in its repurchase facility requirements?

The amendments reduced the minimum tangible net worth requirement under the Citibank, Morgan Stanley and Wells Fargo facilities from $500 million to $400 million. For the Wells Fargo Facility, the requirement also includes 80% of net proceeds from future equity issuances.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/09/2026 - 04:33 PM Accepted by SEC EDGAR 10/09/2026 - 04:32 PM Learn about SEC filing dates

False000152937700015293772026-10-052026-10-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________________________________ 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 5, 2026

ARES COMMERCIAL REAL ESTATE CORPORATION

(Exact Name of Registrant as Specified in Charter)

 

Maryland

001-35517

45-3148087

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

245 Park Avenue,

42nd Floor,

New York,

NY

10167

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code (212) 750-7300

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $0.01 par value per share			ACRE			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 1.01 Entry into a Material Definitive Agreement.

On October 5, 2026, Ares Commercial Real Estate Corporation (the “Company”) and certain of its wholly owned subsidiaries entered into amendments to each of the Company’s: (i) master repurchase facility with Citibank, N.A.; (ii) master repurchase and securities contract with Morgan Stanley Bank, N.A.; and (iii) master repurchase funding facility with Wells Fargo Bank, National Association (the “Wells Fargo Facility”). The amendments reduced the Company’s minimum tangible net worth requirement under each facility from $500 million to $400 million, plus, only with respect to the Wells Fargo Facility, 80% of the net proceeds from future equity issuances by the Company.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information required by Item 2.03 contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

									ARES COMMERCIAL REAL ESTATE CORPORATION
Date:			October 9, 2026						/s/ Jeffrey M. Gonzales
						Name:			Jeffrey M. Gonzales
						Title:			Chief Financial Officer and Treasurer

    

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Filing Exhibits & Attachments

3 documents

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 2.0 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 22.5 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.9 KB