Arbor Realty Trust Closes an $800 Million Collateralized Securitization Vehicle
UNIONDALE, N.Y., March 11, 2020 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced the closing of an $800 million commercial real estate mortgage securitization (the
“Securitization”). This is Arbor’s thirteenth collateralized securitization vehicle. An aggregate of $668 million of investment grade-rated notes were issued (the “Notes”) and Arbor retained
subordinate interests in the issuing vehicle of $132 million. The $800 million of collateral includes approximately $160 million of additional capacity 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 141 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 $800 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.