Apollo Inks $264.6M Refi with Wells Fargo
Posted January 11, 2012
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NEW YORK - In a refinancing maneuver of all outstanding debt for a term asset-backed securities loan, Apollo Commercial Real Estate Finance Inc. has replaced $298.6 million of CMBS debt with a $264.4 million facility from Wells Fargo Bank. The move also came with expanded capacity of its master repurchase agreement with the lender.
Prior to the refinance, Apollo's TALF borrowing totaled $250.3 million at a weighted average cost of funds of 2.8 percent and was secured by AAA-rated CMBS notes. The move to Wells Fargo resulted in a weighted average cost of funds of about 1.9 percent. Also, Apollo entered into interest rate swap agreements with an initial aggregate notional of $56.3 million.
Stuart Rothstein, Apollo's CFO, said the deal generates about $14 million of additional capital, lowers the borrowing cost and gains five months on the maturity. The new expiration is August 2013.
Last month, Apollo increased the Wells Fargo facility to $506 million from $250 million. Borrowings resulting from the additional capacity will carry a 30-day LIBOR plus 1.5 percent interest rate.
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