Arbor Realty Trust, Inc. Announces Pricing for Upsized
UNIONDALE, NY, Aug. 02, 2022 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (the “Company”) (NYSE:ABR) today announced the pricing of its increased offering of an aggregate principal amount of $250 million of its 7.50% Senior Convertible Bonds due 2025 (the “Bonds”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The aggregate principal amount of the offering has been increased from the previously announced offering of $200 million aggregate principal amount of Notes. The sale of Notes to initial purchasers is expected to settle on or about August 5, 2022, subject to customary closing conditions. The Company has also granted original purchasers of the Notes a 13-day option to purchase up to an additional aggregate principal amount of $37.5 million of the Notes on the same terms and conditions.
The Notes will be senior unsecured obligations of the Company and will bear interest at a rate equal to 7.50% per annum, payable semi-annually in arrears on February 1 and August 1 in each year, commencing February 1, 2023 and will mature on 1st 2025, unless converted or redeemed earlier. The Company will not have the right to redeem the Notes prior to maturity. The Notes will be convertible, subject to certain conditions, into cash, common shares of the Company or a combination thereof, at the Company’s sole option. The conversion rate will initially be equal to 59.8480 common shares of the Company per $1,000 principal amount of Notes, which equates to an initial conversion price of approximately $16.71 per common share, representing a premium conversion rate of approximately 10.00% based on the closing price of the Company’s common shares of $15.19 per share on August 2, 2022.
The Company intends to use the net proceeds of the offering to redeem for cash a portion of its outstanding 4.75% convertible senior notes due 2022 in privately negotiated transactions, which may be made through any of the original purchasers or its affiliate, as agent of the Company. , and use any remaining product from the offer for general corporate purposes.
The offer and sale of the Notes and common shares of the Company, if any, issuable upon conversion of the Notes have not been and will not be registered under any securities law or any state securities law and, unless so registered, the Notes and such Shares may not be offered or sold in the United States or to United States persons, except pursuant to an exemption or in in a transaction not subject to the registration requirements of the Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor an offer or solicitation to sell any securities in any jurisdiction in which such an offer, solicitation or sale is unlawful.
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. (NYSE:ABR) is a nationwide real estate investment trust and direct lender, providing lending and servicing for multifamily and single family (SFR) rental portfolios and other real estate assets various trades. Based in New York, Arbor manages a multibillion-dollar portfolio of services, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS®, Freddie Mac Optigo® Seller/Servicer, and FHA Multifamily Accelerated Processing (MAP) approved lender. Arbor’s product platform also includes bridge, CMBS, mezzanine and senior loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and personalized solutions with an unparalleled dedication to providing our clients with excellence throughout the life of a loan.
Safe Harbor Statement
Certain elements of this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to expectations of the Company regarding the expected closing date. and the intended use of the net proceeds of the offering. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company cannot guarantee that its expectations will be met. Factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, risks and uncertainties relating to the completion of the Offer on the terms anticipated or not at all, the terms market conditions, the satisfaction of customary closing conditions related to the offer, changes in economic conditions generally, and the real estate markets in particular, in particular, due to the uncertainties created by the COVID-19 pandemic, the ability continues to find new investments, changes in interest rates and/or credit spreads, and other risks detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and its other reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which such statement is based. .
Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer