Arbor Realty Trust, Inc. Announces Public Offering of Additional Shares of 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

Rhea-AI Summary

Arbor Realty Trust plans a public offering of additional shares of its 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (ABR PrF). The offering will include an option for underwriters to buy additional shares for overallotments. This issuance follows the previous issuance of 8,050,000 shares of the Series F Preferred Stock. Proceeds will be directed towards business investments and general corporate purposes. The offering utilizes the company's existing effective shelf registration statement.

Positive

• Proceeds from the offering will support investments related to business growth.
• The issuance of additional shares may strengthen capital structure.

Negative

• Potential shareholder dilution from the additional shares offered.
• Market sensitivity to the offering amidst economic uncertainties.

UNIONDALE, N.Y., Jan. 31, 2022 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (the “Company”) (NYSE:ABR) announced today that it plans to make a public offering of additional shares of its 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series F Preferred Stock”). In connection with the offering, the Company intends to grant the underwriters a 30-day option to purchase additional shares of Series F Preferred Stock to cover over-allotments, if any. The additional shares of Series F Preferred Stock constitute an additional issuance of shares of Series F Preferred Stock, with 8,050,000 shares of Series F Preferred Stock previously issued (the “Outstanding Series F Preferred Stock”).   The Series F Preferred Stock will be treated as a single series with and have the same terms as the Outstanding Series F Preferred Stock. The Outstanding Series F Preferred Stock is, and the Series F Preferred Stock sold in the offering will be, listed on the NYSE under the symbol “ABR PrF.”

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

Raymond James & Associates, Inc. will serve 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 will be made pursuant to the Company’s existing effective shelf registration statement, previously filed with the Securities and Exchange Commission. The offering of these securities will be made only by means of a prospectus and related prospectus supplement. When available, copies of the prospectus and accompanying preliminary 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, 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.

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 proposed offering and 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, 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

FAQ

What is the offering size for Arbor Realty Trust's Series F Preferred Stock?

Arbor Realty Trust is offering additional shares of its 6.25% Series F Preferred Stock, expanding beyond 8,050,000 previously issued shares.

What will Arbor Realty Trust use the net proceeds from the offering for?

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

When is Arbor Realty Trust's Series F Preferred Stock expected to be listed?

The new shares will be listed on the NYSE under the symbol ABR PrF, in line with the previously issued shares.

Who is managing the offering for Arbor Realty Trust?

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

What risks are associated with the public offering by Arbor Realty Trust?

The offering carries risks including market conditions and potential shareholder dilution.