Apollo Commercial Real Estate Finance to Offload Troubled Asset to Secure Investor Backing

Apollo Commercial Real Estate Finance (ACRE) is set to sell its loan portfolio to Athene, a leading retirement account provider, in an effort to shore up its finances and restore investor confidence. The deal, valued at approximately $12.05 per share, aims to provide ACRE with the necessary capital to stabilize its balance sheet. The move comes as ACRE has been grappling with significant challenges, including rising interest rates and increasing loan defaults, which have led to a decline in the company’s stock price. By offloading its troubled assets, ACRE hopes to alleviate some of these pressures and position itself for future growth. Athene, on the other hand, sees the acquisition as an opportunity to expand its presence in the commercial real estate finance market while also gaining access to a diverse portfolio of loans. The deal is expected to be completed by the end of 2023, pending regulatory approvals and other customary conditions. As part of the agreement, ACRE will transfer its entire loan portfolio to Athene for approximately $2.1 billion. In return, Athene will provide ACRE with approximately $2.8 billion in cash, which can be used to repay debt and invest in new opportunities. The transaction is subject to various conditions, including regulatory approval from the Federal Reserve, the SEC, and other relevant authorities. Once completed, it is expected to mark a significant turning point for ACRE, allowing the company to refocus on its core business and navigate the current economic landscape with greater stability. For investors, the sale of ACRE’s loan portfolio represents a welcome relief, providing a clear path forward for the company as it seeks to restore its financial footing. With Athene’s backing, ACRE is poised to emerge from this challenging period stronger and more resilient than ever before.