Arbor Realty Trust Closes a $1.15 Billion Repurchase Facility to Unwind Two Outstanding Collateralized Loan Obligations
Arbor Realty Trust (NYSE: ABR) has announced the closing of a $1.15 billion repurchase facility with JPMorgan Chase Bank. The company will transfer $1.43 billion of assets into this facility, with $1.34 billion coming from two existing collateralized loan obligations (CLOs) set for redemption on March 17, 2025.
The new facility offers several advantages:
- 80% leverage compared to the CLOs' 77%
- Lower pricing than the existing CLOs (which were at SOFR plus 2.24%)
- Primarily nonrecourse structure
- Two-year replenishment period for reinvesting principal proceeds
- $100 million accordion feature exercisable within 90 days
This strategic transaction has generated approximately $80 million in additional liquidity and enhanced returns through improved leverage and reduced pricing. All assets being pledged have been recently appraised with confirmed values.
Arbor Realty Trust (NYSE: ABR) ha annunciato la chiusura di un prestito di riacquisto da 1,15 miliardi di dollari con JPMorgan Chase Bank. L'azienda trasferirà 1,43 miliardi di dollari di attivi in questo prestito, con 1,34 miliardi provenienti da due obbligazioni di prestito collateralizzate (CLO) esistenti che saranno rimborsate il 17 marzo 2025.
Il nuovo prestito offre diversi vantaggi:
- Leva dell'80% rispetto al 77% delle CLO
- Prezzi più bassi rispetto alle CLO esistenti (che erano a SOFR più 2,24%)
- Struttura principalmente non ricorsiva
- Periodo di reinvestimento di due anni per il riutilizzo dei proventi del capitale
- Caratteristica dell'accordo da 100 milioni di dollari esercitabile entro 90 giorni
Questa transazione strategica ha generato circa 80 milioni di dollari in liquidità aggiuntiva e ha migliorato i ritorni attraverso una leva migliorata e una riduzione dei prezzi. Tutti gli attivi messi in pegno sono stati recentemente valutati con valori confermati.
Arbor Realty Trust (NYSE: ABR) ha anunciado el cierre de un facilidad de recompra de $1.15 mil millones con JPMorgan Chase Bank. La compañía transferirá $1.43 mil millones en activos a esta facilidad, con $1.34 mil millones provenientes de dos obligaciones de préstamo colateralizadas (CLO) existentes que se redimirán el 17 de marzo de 2025.
La nueva facilidad ofrece varias ventajas:
- 80% de apalancamiento en comparación con el 77% de las CLO
- Precios más bajos que las CLO existentes (que estaban a SOFR más 2.24%)
- Estructura principalmente no recursiva
- Período de reposición de dos años para reinvertir los ingresos del capital
- Característica de acordeón de $100 millones que se puede ejercer dentro de 90 días
Esta transacción estratégica ha generado aproximadamente $80 millones en liquidez adicional y ha mejorado los rendimientos a través de un apalancamiento mejorado y precios reducidos. Todos los activos comprometidos han sido recientemente tasados con valores confirmados.
Arbor Realty Trust (NYSE: ABR)는 JPMorgan Chase Bank와 11억 5천만 달러 규모의 재매입 시설을 마감했다고 발표했습니다. 이 회사는 이 시설에 14억 3천만 달러의 자산을 이전할 예정이며, 이 중 13억 4천만 달러는 2025년 3월 17일에 상환될 두 개의 기존 담보부 대출 의무(CLO)에서 나옵니다.
새로운 시설은 여러 가지 장점을 제공합니다:
- CLO의 77%에 비해 80%의 레버리지
- 기존 CLO보다 낮은 가격 (SOFR + 2.24% 기준)
- 주로 비상환 구조
- 원금 수익 재투자를 위한 2년의 보충 기간
- 90일 이내에 행사 가능한 1억 달러 규모의 아코디언 기능
이 전략적 거래는 약 8천만 달러의 추가 유동성을 생성했으며, 개선된 레버리지와 가격 인하를 통해 수익을 향상시켰습니다. 담보로 제공된 모든 자산은 최근에 평가되어 확인된 가치를 가지고 있습니다.
Arbor Realty Trust (NYSE: ABR) a annoncé la clôture d'une facilité de rachat de 1,15 milliard de dollars avec JPMorgan Chase Bank. La société transférera 1,43 milliard de dollars d'actifs dans cette facilité, dont 1,34 milliard provient de deux obligations de prêt garanties (CLO) existantes qui seront remboursées le 17 mars 2025.
La nouvelle facilité offre plusieurs avantages :
- 80 % de levier par rapport à 77 % pour les CLO
- Des prix inférieurs à ceux des CLO existants (qui étaient à SOFR plus 2,24 %)
- Structure principalement non-recours
- Période de renouvellement de deux ans pour réinvestir les produits du capital
- Fonctionnalité d'accordéon de 100 millions de dollars exerçable dans les 90 jours
Cette transaction stratégique a généré environ 80 millions de dollars de liquidités supplémentaires et amélioré les rendements grâce à un effet de levier amélioré et à une réduction des prix. Tous les actifs mis en gage ont été récemment évalués avec des valeurs confirmées.
Arbor Realty Trust (NYSE: ABR) hat den Abschluss einer Rückkaufvereinbarung über 1,15 Milliarden Dollar mit der JPMorgan Chase Bank bekannt gegeben. Das Unternehmen wird 1,43 Milliarden Dollar an Vermögenswerten in diese Vereinbarung übertragen, wobei 1,34 Milliarden Dollar aus zwei bestehenden besicherten Darlehensverpflichtungen (CLOs) stammen, die am 17. März 2025 fällig sind.
Die neue Vereinbarung bietet mehrere Vorteile:
- 80% Hebel im Vergleich zu 77% bei den CLOs
- Günstigere Preise als bei den bestehenden CLOs (die bei SOFR plus 2,24% lagen)
- Primär nicht rückforderbare Struktur
- Zwei Jahre Auffüllungsfrist für die Wiederanlage der Kapitalerträge
- 100 Millionen Dollar Accordion-Funktion, die innerhalb von 90 Tagen ausgeübt werden kann
Diese strategische Transaktion hat etwa 80 Millionen Dollar an zusätzlicher Liquidität generiert und die Renditen durch verbesserten Hebel und reduzierte Preise erhöht. Alle verpfändeten Vermögenswerte wurden kürzlich bewertet und haben bestätigte Werte.
- Generated $80 million in additional liquidity
- Increased leverage from 77% to 80%
- Reduced pricing compared to existing CLOs (previously SOFR+2.24%)
- $100 million accordion feature available
- Two-year replenishment period for reinvesting principal proceeds
- Increased leverage exposure from 77% to 80%
Insights
Arbor Realty Trust's $1.15 billion repurchase facility with JPMorgan represents a significant optimization of their capital structure with multiple tangible benefits. By transferring $1.43 billion of assets into this facility (including $1.34 billion from existing CLOs), ABR is executing a sophisticated liability management strategy.
The transaction creates
Beyond the immediate financial benefits, this facility's structure provides valuable operational flexibility through its two-year replenishment period, allowing the reinvestment of principal proceeds from asset repayments. The additional
The recent appraisals confirming the values of transferred assets serves as a meaningful third-party validation of ABR's loan book quality. This transaction demonstrates ABR maintains strong institutional banking relationships and access to attractive financing despite the challenging commercial real estate environment that many lenders have faced.
Ultimately, this restructuring should enhance shareholder returns through improved asset yields and expanded liquidity, while the primarily non-recourse nature of the facility limits ABR's corporate-level risk exposure.
UNIONDALE, N.Y., March 13, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced the closing of a
The Repurchase Facility is match funded with
As a result of these transactions, the Company has created approximately
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® lender, Freddie Mac Optigo® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine, and preferred equity loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality, and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.
Safe Harbor Statement
Certain items in 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. 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. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2024 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
| Contact: | Arbor Realty Trust, Inc. Investor Relations 516-506-4200 InvestorRelations@arbor.com |
FAQ
What is the size and purpose of ABR's new repurchase facility with JPMorgan?
How much additional liquidity will ABR generate from this repurchase facility?
What are the key terms of ABR's new repurchase facility?
When will ABR redeem the existing CLOs being replaced by the repurchase facility?
How does the leverage compare between ABR's new facility and existing CLOs?
