UNIONDALE, NY, June 10, 2021 (GLOBE NEWSWIRE) – Arbor Realty Trust, Inc. (NYSE: ABR), today announced the closing of an $ 815 million commercial real estate mortgage securitization (the “Securitization “). A total of approximately $ 674 million of premium notes were issued (the “Notes”) and Arbor retained a subordinated interest in the issuance vehicle of approximately $ 141 million. The $ 815 million guarantee includes an ability of approximately $ 162 million 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 137 basis points over one-month LIBOR, excluding commissions and transaction costs. The facility has a replenishment period of approximately two and a half years which allows the principal proceeds of repayments of portfolio assets to be reinvested in eligible replacement assets, subject to certain conditions.
The offering of the Notes was made by way of a private placement. The notes were issued under a trust deed and are initially secured by a portfolio of real estate assets and cash with a face value of $ 815 million, these real estate assets consisting primarily of mortgage bridging loans of first row.
Arbor intends to hold the portfolio of real estate assets through the vehicle to maturity and plans to record the securitization on its balance sheet as funding. Arbor will use the proceeds of this securitization to repay borrowings under its current credit facilities, pay transaction costs and fund future loans and investments.
Certain of the Notes have been rated by Moody’s Investors Service, Inc. and all of the Notes have been rated by DBRS, Inc.
The Securities 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 the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be illegal. prior to registration or qualification under the securities laws of that 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 loans and services for multi-family, single-family (SFR) rental portfolios and other assets various commercial real estate. Based in New York City, Arbor manages a multibillion-dollar service portfolio specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® Lender, Freddie Mac Optigo® Seller / Servicer and an FHA Multifamily Accelerated Processing (MAP) Approved Lender. Arbor’s product platform also includes bridge loans, CMBS, mezzanine and preferred shares. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and personalized solutions with unparalleled dedication to providing our clients with excellence throughout the life of a loan. .
Safe Harbor Declaration
Certain elements of 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 the current expectations and beliefs of management and are subject to a number of trends. and uncertainties that could cause actual results to differ materially from those described in forward-looking statements. Arbor cannot guarantee that its expectations will be met. Factors that could cause actual results to differ materially from Arbor’s expectations include, without limitation, changes in economic conditions in general, and real estate markets in particular, in particular, due to the uncertainties created. by the COVID-19 pandemic, the continued ability to seek out 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 fiscal year ended December 31, 2020 and its other reports filed with the SEC. These forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or commitment to publicly release any update or revision to any forward-looking statement contained herein to reflect any change in Arbor’s expectations in this regard or any change in the events, conditions or circumstances upon which such a statement is based.