Arbor Realty Trust (ABR) Announces Aggregate $75M Conv. Senior Notes Offering

September 29, 2016 4:08 PM EDT

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Arbor Realty Trust, Inc. (NYSE: ABR) announced that it intends to offer, subject to market and other conditions, $75 million aggregate principal amount of Convertible Senior Notes due 2019 (the “Notes”) in an underwritten public offering registered under the Securities Act of 1933, as amended. The Company intends to grant the underwriters a 30-day option to purchase up to $11.25 million aggregate principal amount of additional Notes to cover over-allotments, if any.

The Notes will pay interest semiannually and are expected to mature on October 1, 2019, 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 interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing the offering.

The Company intends to use the net proceeds from the offering to make investments relating to its business and for general corporate purposes.

J.P. Morgan Securities LLC, JMP Securities LLC and BofA Merrill Lynch are acting as joint book-running managers for the offering.

The offering is being made pursuant to an effective shelf registration statement, including a prospectus and related prospectus supplement, filed by the Company with the Securities and Exchange Commission (“SEC”). These documents may be obtained for free by visiting the SEC’s website at http://www.sec.gov. Alternatively, a copy of the preliminary prospectus supplement and accompanying prospectus related to the offering may be obtained, when available, by contacting J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; or JMP Securities LLC, 600 Montgomery Street, 10th Floor, San Francisco, CA 94111, Attention: Prospectus Department, or by calling (415) 835-3959.



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