Athene to Buy ARI CRE Loan Portfolio for ~$9B

Athene Holding Ltd. has entered into a definitive agreement to buy Apollo Commercial Real Estate Finance, Inc.’s entire approximately $9 billion commercial real estate loan portfolio. The purchase price is based on 99.7% of total loan commitments, net of asset-specific CECL reserves, with two loans totaling $146 million expected to be repaid prior to closing.

After repayment of ARI financing facilities and other indebtedness and transaction expenses, ARI expects approximately $1.4 billion of net cash and approximately $1.7 billion of common stockholders’ equity, or about $12.05 per share. Athene can assign the acquisition to Apollo affiliates and funds, and the deal is subject to majority shareholder approval.