Arbor Realty Trust Closes an $800 Million Collateralized Securitization Vehicle
March 11 2020 - 4:10PM
Arbor Realty Trust, Inc. (NYSE: ABR), today announced the closing
of an $800 million commercial real estate mortgage securitization
(the “Securitization”). This is Arbor’s thirteenth collateralized
securitization vehicle. An aggregate of $668 million of investment
grade-rated notes were issued (the “Notes”) and Arbor retained
subordinate interests in the issuing vehicle of $132 million. The
$800 million of collateral includes approximately $160 million of
additional capacity to acquire additional loans for a period of up
to 180 days from the closing date of the Securitization.
The Notes have an
initial weighted average spread of approximately 141 basis points
over one-month LIBOR, excluding fees and transaction costs. The
facility has a three-year replenishment period that allows the
principal proceeds from repayments of the portfolio assets to be
reinvested in qualifying replacement assets, subject to certain
conditions.
The offering of the Notes was made pursuant to a
private placement. The Notes were issued under an indenture and are
secured initially by a portfolio of real estate related assets and
cash with a face value of $800 million, with such real estate
related assets consisting primarily of first mortgage bridge
loans.
Arbor intends to own the portfolio of real
estate related assets through the vehicle until its maturity and
expects to account for the Securitization on its balance sheet as a
financing. Arbor will use the proceeds of this Securitization to
repay borrowings under its current credit facilities, pay
transaction expenses and to fund future loans and investments.
Certain of the Notes were rated by Moody's
Investors Service, Inc. and all of the Notes were rated by DBRS,
Inc.
The Notes are not registered under the
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent an applicable exemption from
registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such
state or jurisdiction.
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. 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, continued ability to
source new investments, changes in interest rates and/or credit
spreads, changes in the real estate markets, and other risks
detailed in Arbor’s Annual Report on Form 10-K for the year ended
December 31, 2019 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.
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Contacts:Arbor Realty Trust,
Inc.Paul Elenio, Chief Financial
Officer516-506-4422pelenio@arbor.com |
Investors:The Ruth
GroupAlexander Lobo646-536-7037alobo@theruthgroup.com |
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Media:Bonnie Habyan, Chief
Marketing Officer516-506-4615bhabyan@arbor.com |
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