Arbor Realty Trust Closes a $785 Million Collateralized Securitization Vehicle
March 15 2021 - 8:30AM
Arbor Realty Trust, Inc. (NYSE: ABR), today announced the closing
of a $785 million commercial real estate mortgage securitization
(the “Securitization”). This is Arbor’s fourteenth collateralized
securitization vehicle. An aggregate of approximately $655 million
of investment grade-rated notes were issued (the “Notes”) and Arbor
retained subordinate interests in the issuing vehicle of
approximately $130 million. The $785 million of collateral includes
approximately $150 million of 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 133 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 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 $785 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, 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 Arbor’s Annual Report on Form 10-K for the
year ended December 31, 2020 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.
Contacts:Arbor Realty Trust,
Inc.Paul Elenio, Chief Financial Officer
516-506-4422pelenio@arbor.com |
Investors:The Ruth GroupDaniel
Kontoh-Boateng/James
Salierno646-536-7019/7028dboateng@theruthgroup.comjsalierno@theruthgroup.com |
Media:Bonnie HabyanChief
Marketing Officer516-506-4615bhabyan@arbor.com |
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