We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Apollo Commercial (ARI) Upsizes Senior Notes Offering to $500M
Read MoreHide Full Article
Apollo Commercial Real Estate Finance, Inc. (ARI - Free Report) recently upsized and priced a private offering of $500 million in aggregate principal amount of 4.625% senior secured notes maturing 2029.
The offering has been increased by $100 million. The notes sale is anticipated to be completed on or about Jun 29, 2021, subject to customary closing norms.
Markedly, the company plans to use the net proceeds from the offering for general corporate purposes, including the reduction of borrowings under its repurchase agreements.
Notably, it has a number of repurchase agreements including those with JPMorgan Chase Bank, Deutsche Bank AG,Goldman Sachs Bank USA, Credit Suisse AG with $1.1 billion, $425.8 million, $322.2 million and $220.2 million of borrowings outstanding under respective facilities, as of Mar 31, 2021.
Notably, Apollo Commercial’s efforts to strengthen its near-term liquidity in these testing times and opportunistically tap the debt market amid the current low-interest-rate environment are strategic fits. In fact, as of the first-quarter 2021 end, the company had $294 million in cash and cash equivalents.
However, the note offering increases the company’s long-term debt obligation. As of Mar 31, 2021, the company’s debt-to-equity ratio was 1.9 and its portfolio comprised $5.8 billion of commercial mortgage loans as well as $1.1 billion of subordinate loans and other lending assets.
Markedly, in recent times a number of REITs have been tapping the debt market to benefit from the low-interest rate environment and strengthen liquidity.
Crown Castle International Corp. (CCI - Free Report) recently announced a public offering of 2.500% senior notes due 2031 for aggregate principal amount of $750 million. The net proceeds are anticipated to be around $739 million and will be used to repay outstanding indebtedness.
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI - Free Report) recently upsized its previously-announced private senior unsecured notes offering from $750 million to $1 billion in aggregate principal amount due in 2026.
Earlier this month Ladder Capital Corp (LADR - Free Report) increased the size of a private offering of 4.750% senior notes due 2029 by $250 million to $650 million. The company intends to use funds for general corporate needs including financing pipeline of new loans, core business line investments and repayments of indebtedness.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
Image: Bigstock
Apollo Commercial (ARI) Upsizes Senior Notes Offering to $500M
Apollo Commercial Real Estate Finance, Inc. (ARI - Free Report) recently upsized and priced a private offering of $500 million in aggregate principal amount of 4.625% senior secured notes maturing 2029.
The offering has been increased by $100 million. The notes sale is anticipated to be completed on or about Jun 29, 2021, subject to customary closing norms.
Markedly, the company plans to use the net proceeds from the offering for general corporate purposes, including the reduction of borrowings under its repurchase agreements.
Notably, it has a number of repurchase agreements including those with JPMorgan Chase Bank, Deutsche Bank AG,Goldman Sachs Bank USA, Credit Suisse AG with $1.1 billion, $425.8 million, $322.2 million and $220.2 million of borrowings outstanding under respective facilities, as of Mar 31, 2021.
Notably, Apollo Commercial’s efforts to strengthen its near-term liquidity in these testing times and opportunistically tap the debt market amid the current low-interest-rate environment are strategic fits. In fact, as of the first-quarter 2021 end, the company had $294 million in cash and cash equivalents.
However, the note offering increases the company’s long-term debt obligation. As of Mar 31, 2021, the company’s debt-to-equity ratio was 1.9 and its portfolio comprised $5.8 billion of commercial mortgage loans as well as $1.1 billion of subordinate loans and other lending assets.
Shares of this Zacks Rank #2 (Buy) company have gained 10.1% over the past three months compared with the industry's growth of 4.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Markedly, in recent times a number of REITs have been tapping the debt market to benefit from the low-interest rate environment and strengthen liquidity.
Crown Castle International Corp. (CCI - Free Report) recently announced a public offering of 2.500% senior notes due 2031 for aggregate principal amount of $750 million. The net proceeds are anticipated to be around $739 million and will be used to repay outstanding indebtedness.
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI - Free Report) recently upsized its previously-announced private senior unsecured notes offering from $750 million to $1 billion in aggregate principal amount due in 2026.
Earlier this month Ladder Capital Corp (LADR - Free Report) increased the size of a private offering of 4.750% senior notes due 2029 by $250 million to $650 million. The company intends to use funds for general corporate needs including financing pipeline of new loans, core business line investments and repayments of indebtedness.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>