Arbor Realty Trust, Inc. Announces Issuance of $175 Million of Senior Unsecured Notes due 2026

Rhea-AI Summary

Arbor Realty Trust, Inc. (NYSE:ABR) announced the issuance of $175 million in senior unsecured notes with a 5.00% interest rate, maturing on April 30, 2026. The net proceeds will be allocated for business investments and general corporate purposes. Piper Sandler & Co. facilitated this private placement. The notes are exempt from registration under the Securities Act of 1933. Arbor focuses on real estate investment, specializing in multifamily housing and various commercial real estate assets.

Positive

• Issued $175 million in senior unsecured notes to fund business investments.
• The interest rate of 5.00% provides a predictable cost of capital.
• Piper Sandler & Co. acted as a placement agent, suggesting confidence in the offering.

Negative

• Notes not registered under the Securities Act may limit investor access.
• Risks associated with economic conditions, particularly due to COVID-19 uncertainties.

UNIONDALE, N.Y., May 04, 2021 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (the “Company”) (NYSE:ABR) announced today that it has issued $175 million aggregate principal amount of 5.00% senior unsecured notes due April 30, 2026 in a private placement (the “Notes”).

The Company intends to use the net proceeds from the offering to make investments relating to its business and for general corporate purposes.

Piper Sandler & Co. acted as placement agent for this offering.

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are being offered and sold in reliance on an exemption from registration provided by Section 4(a)(2) of the Securities Act. Unless so registered, the Notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such 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 loan origination and servicing for multifamily, seniors housing, healthcare 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 Fannie Mae DUS® lender and Freddie Mac Optigo Seller/Servicer. Arbor’s product platform also includes CMBS, bridge, mezzanine and preferred equity lending.

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, including, but not limited to, statements relating to the anticipated use of the net proceeds from 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 can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, in particular, due to the uncertainties created by the COVID-19 pandemic, continued ability to source 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 year ended December 31, 2020 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. The Company 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 the Company’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

Contact: Arbor Realty Trust, Inc. Paul Elenio, Chief Financial Officer 516-506-4422 pelenio@arbor.com

Investors: The Ruth Group Daniel Kontoh-Boateng/James Salierno 646-536-7019/7028 dboateng@theruthgroup.com jsalierno@theruthgroup.com

FAQ

What are the details of Arbor Realty Trust's recent note issuance (ABR)?

Arbor Realty Trust issued $175 million in senior unsecured notes at a 5.00% interest rate, due April 30, 2026.

What does Arbor Realty Trust plan to do with the proceeds from the notes (ABR)?

The proceeds will be used for business investments and general corporate purposes.

Who acted as the placement agent for Arbor Realty Trust's note offering (ABR)?

Piper Sandler & Co. acted as the placement agent for the offering.

Are the senior unsecured notes issued by Arbor Realty Trust registered (ABR)?

No, the notes are not registered under the Securities Act of 1933 and are offered under an exemption.

What are the potential risks related to Arbor Realty Trust's note issuance (ABR)?

Risks include changes in economic conditions and specific issues stemming from the COVID-19 pandemic.