Apollo Commercial refinances all TALF borrowings with Wells Fargo Bank

Apollo Commercial Real Estate Finance (ARI) announced that it utilized additional capacity under the company's master repurchase agreement with Wells Fargo Bank (WFC) to refinance all of the company's debt outstanding under the Term Asset-Backed Securities Loan Facility, or TALF, program administered by the Federal Reserve Bank of New York. Prior to the refinancing, the company had TALF borrowings totaling $250.3M with a weighted average cost of funds of 2.8%. Those borrowings were secured by AAA-rated commercial mortgage-backed securities with a face amount of $298.6M. By moving the CMBS to the Wells Facility, the company was able to increase the advance rate and lower the cost of borrowing, resulting in $264.4M of borrowings with a current weighted average cost of funds of approximately 1.9%. The company entered into interest rate swap agreements with an initial aggregate notional of $56.3M.