Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) announced today
the pricing of an underwritten initial public offering of 10,000,000
shares of its common stock, at a price to the public of $20.00 per
share, for gross proceeds of $200 million. ARI has granted the
underwriters a 30-day option to purchase up to an additional 1,500,000
shares of common stock to cover over-allotments, if any. ARI is
externally managed and advised by ACREFI Management, LLC, a recently
formed indirect subsidiary of Apollo Global Management, LLC (Apollo).
Concurrent with the completion of the offering, ARI will complete a
private placement of 500,000 shares of common stock, at a price per
share equal to the initial public offering price, to Apollo and certain
of its affiliates.
The estimated net proceeds to ARI from the initial public offering and
the concurrent private placement, after the payment of related expenses,
are expected to be approximately $208 million (assuming the
underwriters’ over-allotment option is not exercised). ARI intends to
use the net proceeds from the offering and the concurrent private
placement to originate and acquire senior performing commercial real
estate mortgage loans, commercial real estate corporate debt and loans
and to purchase legacy and newly originated investment grade CMBS, and
other performing real estate debt investments.
The shares of Apollo Commercial Real Estate Finance, Inc. are scheduled
to begin trading on September 24, 2009 on the New York Stock Exchange
under the ticker symbol “ARI.”
J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Barclays
Capital Inc. are acting as joint book running managers of the public
offering. Wells Fargo Securities, LLC, Raymond James & Associates, Inc.,
RBC Capital Markets Corporation and Stifel, Nicolaus & Company,
Incorporated are acting as co-managers.
A registration statement relating to these securities has been declared
effective by the Securities and Exchange Commission. This press release
shall not constitute an offer to sell or a solicitation of an offer to
buy, nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such state or jurisdiction. The offering is being made solely by means
of a prospectus.
The shares sold in the concurrent private placement have not been
registered under the Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
ARI expects to close the transaction on or about Tuesday, September 29,
2009, subject to the satisfaction of customary closing conditions.
When available, copies of the prospectus may be obtained by calling J.P.
Morgan toll-free at 1-866-430-0686, Citi toll-free at 1-800-831-9146 or
Barclays Capital toll free at 1-888-603-5847.
Apollo Commercial Real Estate Finance, Inc.
Stuart
Rothstein, 212-822-0722