Arbor Realty Trust Closes Eighth Collateralized Securitization Vehicle
25 August 2017 - 6:15AM
Arbor Realty Trust, Inc. (NYSE:ABR), today announced the closing of
a $365 million commercial real estate mortgage securitization (the
“Securitization”). An aggregate of $283 million of investment
grade-rated notes were issued (the “Notes”) and Arbor retained
subordinate interests in the issuing vehicle of approximately $82
million. The $365 million of collateral includes approximately $71
million of additional capacity to acquire future loans for a period
of up to 120 days from the closing date of the Securitization.
The Notes have an initial weighted average
spread of approximately 131 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 $365 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
real estate investment trust and national direct lender
specializing in loan origination and servicing for multifamily,
seniors housing, healthcare and other diverse commercial real
estate assets. Arbor is a Top 10 Fannie Mae DUS® Multifamily Lender
by volume and a Top Fannie Mae Small Loan lender, a Freddie Mac
Program Plus® Seller/Servicer and the Top Freddie Mac Small Balance
Loan Lender, a Fannie Mae and Freddie Mac Seniors Housing Lender,
an FHA Multifamily Accelerated Processing (MAP)/LEAN Lender, a
HUD-approved LIHTC Lender as well as a CMBS, bridge, mezzanine and
preferred equity lender, consistently building on its reputation
for service, quality and flexibility. With a fee-based servicing
portfolio of over $15 billion, Arbor is a primary commercial loan
servicer and special servicer rated by Standard & Poor’s with
an Above Average rating. Arbor is also on the Standard & Poor’s
Select Servicer List and is a primary commercial loan servicer and
loan level special servicer rated by Fitch Ratings.
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, 2016 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
516-506-4422
pelenio@arbor.com
Investors:
The Ruth Group
Lee Roth
646-536-7012
lroth@theruthgroup.com
Media:
Bonnie Habyan, EVP of Marketing
516-506-4615
bhabyan@arbor.com
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