UNIONDALE, N.Y., Nov. 08, 2017 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (the “Companyâ€) (NYSE:ABR) today announced the pricing of its previously announced underwritten public offering of $125 million aggregate principal amount of its 5.375% Convertible Senior Notes due 2020 (the “Notesâ€), registered under the Securities Act of 1933, as amended. The Company has granted the underwriters a 30-day option to purchase up to $18.75 million aggregate principal amount of additional Notes on the same terms and conditions to cover over-allotments, if any. The offering is expected to close on or about November 13, 2017, subject to satisfaction of customary closing conditions.
The Notes will bear interest at a rate equal to 5.375% per year, payable semiannually in arrears on May 15 and November 15 of each year, beginning on May 15, 2018 and will mature on November 15, 2020, unless earlier converted or repurchased.The Company will not have the right to redeem the Notes prior to maturity. The Notes will be convertible, subject to certain conditions, into cash, shares of the Company’s common stock or a combination thereof, at the Company’s sole election. The conversion rate will initially equal 107.7122 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $9.28 per share of common stock, representing an approximate 10% conversion premium based on the closing price of the Company’s common stock of $8.44 per share on November 7, 2017.
The Company intends to use the net proceeds from the offering to make investments relating to its business and for general corporate purposes.The Company may also use a portion of the net proceeds from this offering to repay certain of its indebtedness; however, the Company has no current commitments or obligations to do so.
J.P. Morgan Securities LLC, JMP Securities LLC and BofA Merrill Lynch are acting as joint book-running managers for the offering.
