Ares Commercial Real Estate Corporation announced that through a wholly owned subsidiary it has closed a $75.0 million credit facility with Los Angeles-based City National Bank (“CNB Facility”). The CNB Facility will expand ACRE’s financial flexibility since it will provide additional capital available for new investments as well as for other working capital and general corporate needs. Proceeds may also be used as capital to allow ACRE to obtain additional leverage under funding facilities with other lenders. Support for this facility was provided by a subsidiary of Ares Management, L.P.

“This new $75.0 million facility enhances our flexibility and provides additional capital to make new loans, which in turn will give us the opportunity to improve investment returns for our shareholders in an accretive manner,” said Todd Schuster, President and Chief Executive Officer of ACRE. “We appreciate the strong support from City National Bank and Ares Management, which facilitated this enhancement to our capital as we further grow and diversify our portfolio.”

“At Ares Management, we believe in the long term growth opportunity for ACRE and we are pleased to facilitate this additional capital to be used to enhance potential returns for ACRE’s shareholders,” said Michael Arougheti, President of Ares Management, L.P.

Total pricing of the CNB Facility is LIBOR plus 3.0% (inclusive of a credit support fee to Ares Management) and has an initial maturity date of July 31, 2015, subject to one 12-month extension option if certain conditions are met.

In addition to this new CNB Facility, ACRE continues to make use of a $50.0 million facility with City National Bank that commenced in March 2014 for a combined borrowing capacity of $125.0 million.

Ares Commercial Real Estate Corporation is a specialty finance company primarily engaged in principal lending and mortgage banking of commercial real estate investments. Through its national direct origination platform, Ares Commercial Real Estate Corporation provides a broad offering of flexible financing solutions for commercial real estate owners and operators. Through ACRE Capital LLC, its mortgage banking business, it originates and services multifamily residential mortgage loans, senior housing and healthcare facilities by utilizing the platforms of Fannie Mae and governmental agencies. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management, L.P., a publicly traded, global alternative asset manager with approximately $77 billion of assets under management as of March 31, 2014. For more information, please visit www.arescre.com.

City National Corporation has $30.8 billion in assets. The company’s wholly owned subsidiary, City National Bank, provides banking, investment and trust services through 77 offices, including 16 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada, New York City, Nashville and Atlanta. The corporation and its investment affiliates manage or administer $65.8 billion in client investment assets, including more than $47.1 billion under direct management.