Arbor Realty Trust Closes Third Collateralized Loan Obligation
UNIONDALE, N.Y., April 28, 2014 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc.
(NYSE:ABR), a real estate investment trust focused on the business of
investing in real estate related bridge and mezzanine loans, preferred and
direct equity investments, mortgage-related securities and other real estate
related assets, today announced the closing of a $375 million collateralized
loan obligation (CLO) issued by two newly-formed subsidiaries of Arbor. An
aggregate of approximately $281 million of investment grade-rated debt was
issued and Arbor retained an equity interest in the portfolio of approximately
$94 million. The $375 million of collateral includes approximately $68 million
of additional capacity to finance future loans for a period of up to120 days
from the closing date of the CLO.
The notes have an initial weighted average spread of approximately 239 basis
points over one-month LIBOR, excluding fees and transaction costs. The
facility has a two and a half year replenishment period that allows the
principal proceeds from repayments of the collateral assets to be reinvested
in qualifying replacement assets, subject to certain conditions.
The offering of the notes evidencing the CLO was made pursuant to a private
placement. The notes were issued underan indenture and are secured initially
by a portfolio of real estate related assets and cash with a face value of
approximately $375 million, with real estate related assets
consistingprimarily of first mortgage bridge loans.
Arbor intends to own the portfolio of real estate-related assets until its
maturity and expects to account for this transaction on its balance sheet as a
financing. Arbor will use the proceeds of this offering to repay borrowings
under its current credit facilities, pay transaction expenses and to fund
future loans and investments.
Sandler O'Neill + Partners, L.P. acted as lead placement agent and Chalkhill
Partners, L.L.P. acted as European co-placement agent for this transaction.
The CLO notes were placed in the United States and in Europe. Certain of the
CLO notes were rated by Moody's Investors Service, Inc.and the CLO notes were
rated by DBRS, Inc.
The notes offered pursuant to the CLO 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 any such state
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. is a real estate investment trust, which invests in a
diversified portfolio of multi-family and commercial real estate related
bridge and mezzanine loans, preferred equity investments, mortgage related
securities and other real estate related assets. Arbor is externally managed
and advised by Arbor Commercial Mortgage, LLC, a national commercial real
estate finance company operating through 14 offices in the US that specializes
in debt and equity financing for multi-family and commercial real estate. For
more information about Arbor Realty Trust, Inc., please visit
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, 2013 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.
Paul Elenio, Chief Financial Officer
Bonnie Habyan, EVP of Marketing
The Ruth Group
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