UNIONDALE, NY, May 25, 2022 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (:ABR), today announced the closing of a $1.05 billion commercial real estate loan securitization (the “Securitization “). A total of approximately $873 million of investment grade notes have been issued (the “Notes”) and Arbor has retained subordinate interests in the issuance vehicle of approximately $177 million. The $1.05 billion guarantee includes approximately $73 million of capacity to acquire additional loans for a period of up to 180 days from the securitization closing date.
The Notes have an initial weighted average spread of 2.36% on forward SOFR, excluding fees and transaction costs. The facility has a replenishment period of approximately two 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 investment grade notes was made pursuant to a private placement. The investment grade notes were issued pursuant to an indenture and initially secured by a portfolio of property-related assets and cash with a face value of $1.05 billion, such assets related to the real estate being mainly made up of first mortgage bridge loans.
Arbor intends to hold the portfolio of real estate-related assets through the vehicle until maturity and expects to account for the securitization on its balance sheet as financing. Arbor will use the proceeds from 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 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 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 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. (: ABR) is a nationwide real estate investment trust and direct lender, providing loans and services for multifamily and single family (SFR) rental portfolios and other miscellaneous commercial real estate assets. Based in New York, Arbor manages a multibillion-dollar portfolio of services, specializing in government-sponsored enterprise products. Arbor is a leader Fannie Mae DUS® lender, Freddie MacOptigo® Seller/Servicer, and an FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanineand preferred shares loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and personalized solutions with an unparalleled dedication to providing our clients with excellence throughout the life of a loan.
Safe Harbor Statement
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 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 cannot guarantee that its expectations will be met. 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 real estate markets specifically, in particular, due to the uncertainties created by the COVID-19 pandemic, the 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 fiscal year ended December 31, 2021 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 undertaking to issue updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with respect thereto or any change in events, conditions or circumstances about which a such statement is based.
Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer