By Cristal Cody
Tupelo, Miss., April 29 - Arbor Realty Trust, Inc. brought $375 million of notes due May 15, 2024 in a previously announced collateralized loan obligation private placement offering, according to details released in an 8-K filing with the Securities and Exchange Commission on Tuesday.
Arbor Realty Collateralized Loan Obligation 2014-1, Ltd./Arbor Realty Collateralized Loan Obligation 2014-1, LLC priced $221.25 million of class A senior secured floating-rate notes (Aaa//), $24.25 million of class B secured floating-rate notes (Baa2//) and $35.75 million of class C secured floating-rate notes.
The notes priced with a weighted average spread of Libor plus 239 basis points.
The deal included $93.75 million of preferred shares in the equity tranche.
Sandler O'Neill + Partners, LP was the lead placement agent.
Arbor Realty Collateral Management, LLC will manage the CLO.
The notes are secured by a portfolio of real estate-related assets that consist primarily of first mortgage bridge loans and cash.
The collateral includes $67.7 million of additional capacity to finance future loans for a period of up to 120 days from the closing date of the CLO, at which point the issuer expects to own loan obligations with a face value of about $375 million, according to the filing.
Proceeds from the deal will be used to repay debt under the trust's current credit facilities and to fund future loans and investments.
Uniondale, N.Y.-based Arbor Realty Trust is a real estate investment trust that invests in real estate-related bridge and mezzanine loans, preferred equity investments and other real estate-related assets.
| Issuer: | Arbor Realty Trust, Inc.
|
| Amount: | $375 million
|
| Maturity: | May 15, 2024
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| Structure: | Managed cash flow CRE CLO
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| Placement agent: | Sandler O'Neill + Partners, LP
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| Co-placement agent: | Chalkhill Partners, LLP
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| Manager: | Arbor Realty Collateral Management, LLC
|
| Weighted average spread: | Libor plus 239 bps
|
| Call feature: | Nov. 15, 2016 and any interest payment date thereafter
|
| Settlement date: | April 28
|
| Distribution: | Private placement
|
|
|
| Class A notes
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| Amount: | $221.25 million
|
| Securities: | Senior secured floating-rate notes
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| Rating: | Moody's: Aaa
|
|
|
| Class B notes
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| Amount: | $24.25 million
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| Securities: | Secured floating-rate notes
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| Rating: | Moody's: Baa2
|
|
|
| Class C notes
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| Amount: | $35.75 million
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| Securities: | Secured floating-rate notes
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| Rating: | Non-rated
|
|
|
| Equity tranche
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| Amount: | $93.75 million
|
| Securities: | Preferred shares
|
| Rating: | Non-rated
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