Arbor Realty Trust, Inc. announced a $500 million offering of 7.875% Senior Notes due 2030 for qualified buyers.
Quiver AI Summary
Arbor Realty Trust, Inc. announced the pricing of a $500 million offering of 7.875% Senior Notes due 2030, which will be conducted by its subsidiary Arbor Realty SR, Inc. The offering is intended for qualified institutional buyers and will close on July 9, 2025, pending standard closing conditions. The proceeds will primarily be used to refinance existing 7.50% Convertible Notes due 2025, with any remaining funds allocated for general corporate purposes. The notes will be unsecured obligations of the Issuer, fully guaranteed by Arbor Realty. J.P. Morgan, Goldman Sachs, and Morgan Stanley are serving as joint managers for the offering. This offering is not registered under the Securities Act and is exempt from registration requirements. Arbor Realty Trust, a nationwide real estate investment trust, specializes in diverse commercial real estate assets.
Potential Positives
- Arbor Realty Trust, Inc. successfully priced an offering of $500 million aggregate principal amount of 7.875% Senior Notes due 2030, indicating strong investor interest and financial confidence.
- The proceeds from the offering will be used to refinance existing Convertible Notes, potentially reducing interest expenses and enhancing the company's financial stability.
- The offering is being managed by reputable financial institutions, including J.P. Morgan, Goldman Sachs, and Morgan Stanley, which adds credibility to the transaction.
Potential Negatives
- The company is increasing its debt load by issuing $500 million in Senior Notes, which may raise concerns about its long-term financial stability.
- The need to refinance and repay outstanding Convertible Notes suggests potential liquidity issues or cash flow concerns within the company.
- The offering is being conducted privately, which may limit market transparency and investor access, potentially leading to questions about the company's financial practices.
FAQ
What type of notes has Arbor Realty Trust announced?
Arbor Realty Trust has announced 7.875% Senior Notes due 2030 in a $500 million offering.
Who are the buyers of the Senior Notes?
The Senior Notes are offered to qualified institutional buyers and non-U.S. persons in compliance with specific regulations.
What will the proceeds from the offering be used for?
A portion of the proceeds will refinance existing notes, and the remainder will be used for general corporate purposes.
When is the offering expected to close?
The offering is expected to close on July 9, 2025, pending customary closing conditions.
Is this offering registered with the Securities Act?
No, the offering of the Notes and guarantee is not registered under the Securities Act or state securities laws.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ABR Insider Trading Activity
$ABR insiders have traded $ABR stock on the open market 11 times in the past 6 months. Of those trades, 11 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $ABR stock by insiders over the last 6 months:
- IVAN KAUFMAN (COB, CEO and President) has made 3 purchases buying 210,000 shares for an estimated $1,942,000 and 0 sales.
- PAUL ELENIO (Chief Financial Officer) has made 2 purchases buying 10,000 shares for an estimated $84,750 and 0 sales.
- GIANNI OTTAVIANO (EVP, Struc Fin Prod) has made 2 purchases buying 4,527 shares for an estimated $40,476 and 0 sales.
- DAVID ERWIN FRIEDMAN (CCO & Head of Non-Agcy Prod) has made 4 purchases buying 4,500 shares for an estimated $39,318 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ABR Hedge Fund Activity
We have seen 142 institutional investors add shares of $ABR stock to their portfolio, and 167 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- COOPERMAN LEON G removed 2,421,194 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $28,449,029
- GOLDMAN SACHS GROUP INC removed 747,822 shares (-15.9%) from their portfolio in Q1 2025, for an estimated $8,786,908
- AZORA CAPITAL LP removed 669,053 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $7,861,372
- CONNOR, CLARK & LUNN INVESTMENT MANAGEMENT LTD. added 619,473 shares (+393.3%) to their portfolio in Q1 2025, for an estimated $7,278,807
- VOLORIDGE INVESTMENT MANAGEMENT, LLC removed 544,095 shares (-86.5%) from their portfolio in Q1 2025, for an estimated $6,393,116
- INVESCO LTD. added 510,772 shares (+30.3%) to their portfolio in Q1 2025, for an estimated $6,001,571
- SUSQUEHANNA INTERNATIONAL GROUP, LLP added 460,312 shares (+478.9%) to their portfolio in Q1 2025, for an estimated $5,408,666
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
UNIONDALE, N.Y., July 02, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (“Arbor”) (NYSE: ABR) today announced that its subsidiary, Arbor Realty SR, Inc. (the “Issuer”), has priced an offering of $500 million aggregate principal amount of 7.875% Senior Notes due 2030 (the “Notes”) in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-United States persons in compliance with Regulation S under the Securities Act. The Notes will be the senior, unsecured obligations of the Issuer and will be fully and unconditionally guaranteed on a senior, unsecured basis by Arbor. The offering is expected to close on July 9, 2025, subject to the satisfaction of customary closing conditions.
The Issuer intends to use a portion of the net proceeds of the offering to refinance, redeem or otherwise repay Arbor’s remaining outstanding 7.50% Convertible Notes due 2025 and use any remaining proceeds from the offering for general corporate purposes.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are acting as joint book-running managers for the offering.
The offer and sale of the Notes and the related guarantee have not been and will not be registered under the Securities Act or any state securities laws, and, unless so registered, the Notes and the related guarantee may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall it constitute an offer, or the solicitation of any sale, of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® lender and Freddie Mac Optigo® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine and preferred equity loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.
Safe Harbor Statement
Certain items in 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 and the Issuer can give no assurance that their expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s and the Issuer’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, 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 the year ended December 31, 2024 and its other reports filed with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release. Arbor and the Issuer expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s or the Issuer’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
Contact:
Arbor Realty Trust, Inc.
Investor Relations
516-506-4200
[email protected]
