- Arbor Realty Trust (NYSE:ABR) has priced its upsized offering of $250M aggregate principal amount of its 7.50% convertible senior notes due 2025.
- The principal amount of the offering was increased from the previously announced offering of $200M aggregate principal amount of Notes.
- The sale of the notes to the initial purchasers is expected to settle on or about August 5, 2022.
- The initial purchasers are granted a 13-day option to purchase up to an additional $37.5M aggregate principal amount of the notes.
- The notes will bear interest at a rate equal to 7.50% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2023 and will mature on August 1, 2025, unless earlier converted or repurchased.
- The conversion rate will initially equal 59.8480 shares of the company’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of ~$16.71/share of common stock, representing ~10.00% conversion premium based on the closing price of the company’s common stock of $15.19/share on August 2, 2022.
- Net proceeds of the offering will be used to repurchase for cash a portion of its outstanding 4.75% convertible senior notes due 2022 and use any remaining proceeds from the offering for general corporate purposes.