Apollo Commercial Real Estate Finance, Inc. (ARI)
, a commercial mortgage real estate investment trust (REIT),
recently priced an underwritten public offering of 7 million
shares to increase its liquidity. To cover over-allotments, Apollo
Commercial also plans to offer an option to underwriters for
purchase of an additional tranche in excess of 1 million shares.
The offering is expected to close on October 9, 2012.
J.P. Morgan - part of
J.P Morgan Chase & Co (JPM)
; BofA Merrill Lynch - part of
Bank of America Corporation (BAC)
; and Citigroup - part of
Citigroup, Inc (C)
acted as joint book-running managers for the offering.
Apollo Commercial expects to utilize the proceeds to acquire
certain assets which include commercial first mortgage loans,
commercial mortgage-backed securities (CMBS), subordinate
financings and other commercial real estate-related debt
investments and for general corporate purposes.
Headquartered in New York, Apollo Commercial primarily acquires,
invests, and manages debt instruments throughout the U.S. Over the
years, the company has actively deployed capital in commercial real
estate debt investments with attractive returns.
Apollo Commercial is currently focused on a diversified portfolio
of performing commercial real estate mortgage loans and CMBS assets
that provides stable yet attractive cash flow yields to
shareholders. As of June 30, 2012 cash and cash equivalents stood
at $11.9 million with approximately $105 billion of assets under
Apollo Commercial currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We have a long-term
Neutral recommendation on the stock.
APOLLO COMMERCL (ARI): Free Stock Analysis
BANK OF AMER CP (BAC): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis
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