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

September 30, 2016 8:39 AM EDT

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Arbor Realty Trust, Inc. (NYSE: ABR) announced the pricing of its previously announced underwritten public offering of $75 million aggregate principal amount of its 6.50% Convertible Senior Notes due 2019 (the “Notes”), registered under the Securities Act of 1933, as amended. The Company has granted the underwriters a 30-day option to purchase up to $11.25 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 October 5, 2016, subject to satisfaction of customary closing conditions.

The Notes will bear interest at a rate equal to 6.50% per year, payable semiannually in arrears on April 1 and October 1 of each year, beginning on April 1, 2017 and will 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 conversion rate will initially equal 119.3033 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $8.38 per share of common stock, representing an approximate 10% conversion premium based on the closing price of the Company’s common stock of $7.62 per share on September 29, 2016.

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. These documents may be obtained for free by visiting the SEC’s website at http://www.sec.gov. Alternatively, a copy of the final 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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