Arbor Realty Trust, Inc. (ABR) announced the pricing of an upsized private placement of $325 million in convertible senior notes, increased from the previously announced $300 million. The company plans to use the proceeds primarily to redeem existing debt and repurchase common stock through concurrent transactions.
Key Details
- Offering Terms: The offering consists of $325 million aggregate principal amount of 6.25% Convertible Senior Notes due July 1, 2029. The initial conversion price is approximately $6.10 per share, representing a 12.5% premium to the stock's closing price on June 30, 2026.
- Use of Proceeds: Funds will be used to redeem in full the $270 million of 4.50% Senior Notes due September 2026, repurchase approximately $11.6 million (2.1 million shares) of its common stock, and fund a prepaid forward stock purchase transaction of approximately $102.7 million.
- Additional Option: Initial purchasers have a 13-day option to purchase up to an additional $50 million in aggregate principal amount of the notes. The offering is expected to close around July 6, 2026.