Arbor Realty Trust, Inc. has completed a private offering of $375 million in aggregate principal amount of 6.25% Convertible Senior Notes due 2029. The total amount includes the full exercise of a $50 million option by the initial purchasers. The company plans to use the proceeds primarily to refinance existing debt and repurchase common stock.
Key Details
- Offering Size: $375 million aggregate principal amount of 6.25% Convertible Senior Notes, maturing on July 1, 2029.
- Use of Proceeds: The gross proceeds of $375 million will be used to redeem $270 million of 4.50% Senior Notes due September 2026, repurchase approximately $114.3 million of its common stock through direct transactions and a prepaid forward agreement, and for general corporate purposes.
- Conversion Terms: The notes have an initial conversion price of approximately $6.10 per share of common stock, which is equivalent to an initial conversion rate of 164.0016 shares per $1,000 principal amount of notes.