AB Commercial Real Estate Private Debt Fund, LLC 8-K

What Happened

• AB Commercial Real Estate Private Debt Fund, LLC filed an 8-K reporting that it became a party to a Master Repurchase Agreement originally dated September 29, 2015 with Morgan Stanley Bank N.A., pursuant to a Second Amendment executed on May 6, 2026 (dated May 1, 2026). The agreement (as previously amended June 1, 2021) allows the Company to enter into repurchase (repo) Transactions in which it sells assets to Morgan Stanley and repurchases them later for an agreed price.

Key Details

• Parties and dates: Master Repurchase Agreement dated 9/29/2015; First Amendment dated 6/1/2021; Second Amendment executed 5/6/2026 (dated 5/1/2026) adding the Company as a party.
• Pricing: Repurchase Price = purchase price + Purchase Price Differential (calculated using Term SOFR on a 360-day basis plus an agreed margin) ± amounts from any Margin Call.
• Margin Call threshold: Second Amendment sets the minimum trigger amount for a Margin Call at $250,000.
• Term/termination: No fixed maturity under the Repurchase Agreement; either party may terminate upon written notice.

Why It Matters

• This agreement gives the Company a potential source of short-term financing and liquidity by entering repo transactions with Morgan Stanley, but it also creates direct financial obligations and counterparty exposure. Key terms—use of Term SOFR for pricing, an agreed margin, and a $250,000 margin-call trigger—determine financing costs and collateral demands. Investors should note the arrangement may affect the Fund’s leverage, liquidity profile, and reliance on a single counterparty for repo funding.