Arbor Realty Trust, Inc. Announces Pricing of Public Offering of Series D Cumulative Redeemable Preferred Stock

Rhea-AI Summary

Arbor Realty Trust (NYSE:ABR) announced a public offering of 8,000,000 shares of 6.375% Series D Cumulative Redeemable Preferred Stock, yielding gross proceeds of $200 million, expected to close on June 2, 2021. The underwriters have an option to purchase an additional 1,200,000 shares. Proceeds will be directed towards business investments, debt repayment, and general corporate purposes. The offering is conducted under an existing effective shelf registration statement with Raymond James & Associates as the book-running manager.

Positive

• Gross proceeds of $200 million from the offering.
• Proceeds will support business investments and debt repayment.

Negative

• Potential dilution of shares for existing shareholders due to the new offering.

UNIONDALE, N.Y., May 25, 2021 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (the “Company”) (NYSE:ABR) announced today that it has priced the public offering of 8,000,000 shares of its 6.375% Series D Cumulative Redeemable Preferred Stock (the “Series D Preferred Stock”), liquidation preference $25.00 per share, for gross proceeds of $200 million, before deducting underwriting discounts and estimated offering expenses. The Company has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares of the Series D Preferred Stock to cover over-allotments, if any. The offering is expected to close on June 2, 2021.

The Company intends to use the net proceeds from the offering to make investments relating to its business and for general corporate purposes, which may include the repayment of indebtedness or the redemption of outstanding preferred stock.

Raymond James & Associates, Inc. is acting as sole book-running manager for the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

The offering is being made pursuant to the Company’s existing effective shelf registration statement, previously filed with the Securities and Exchange Commission. The offering of these securities is being made only by means of a prospectus and related prospectus supplement. When available, copies of the prospectus and accompanying final prospectus supplement relating to these securities may be obtained by contacting Raymond James & Associates, Inc., Attention: Syndicate, 880 Carillon Parkway St. Petersburg, FL 33716, by telephone at (800) 248-8863, or by email at prospectus@raymondjames.com.

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 completion of the proposed offering and the anticipated gross proceeds and 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, risks and uncertainties related to the completion of the offering on the anticipated terms or at all, market conditions, the satisfaction of customary closing conditions related to the offering, 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 prospectus supplement relating to the offering and the documents incorporated by reference therein, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and its other reports filed with the Securities and Exchange Commission. 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 is the details of Arbor Realty Trust's (ABR) recent public offering?

Arbor Realty Trust announced a public offering of 8,000,000 shares of its 6.375% Series D Cumulative Redeemable Preferred Stock, priced at a liquidation preference of $25.00 per share, expected to raise $200 million.

When is the Arbor Realty Trust (ABR) offering expected to close?

The offering is expected to close on June 2, 2021.

What will Arbor Realty Trust (ABR) do with the proceeds from the offering?

The proceeds will be used for business investments, general corporate purposes, and potentially for debt repayment.

Is there an option for underwriters in the Arbor Realty Trust (ABR) offering?

Yes, underwriters have a 30-day option to purchase an additional 1,200,000 shares to cover over-allotments.