By Abigail W. Adams
Portland, Me., June 29 – Arbor Realty Trust, Inc. priced $100 million of three-year convertible notes after the market close on Thursday at the cheap end of talk with a coupon of 5.25% and an initial conversion premium of 10%, according to a company news release.
Price talk had been for a coupon of 4.75% to 5.25% and an initial conversion premium of 10% to 15%, according to a market source.
J.P. Morgan Securities LLC was lead left bookrunner for the Rule 144A deal, which carries a greenshoe of $15 million. JMP Securities LLC was also a bookrunner.
The notes are non-callable.
The company intends to use $78.9 million of the proceeds to enter into privately negotiated transactions with holders of $87.9 million of its 6.5% convertible senior notes due 2019 to exchange the 6.5% notes for cash and stock. As well as the cash payment, Arbor will issue 3.4 million shares.
The remaining proceeds will be used for general corporate purposes.
Arbor Realty Trust is a Uniondale, N.Y.-based real estate investment trust and national direct lender.
| Issuer: | Arbor Realty Trust Inc.
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| Securities: | Convertible senior notes
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| Amount: | $100 million
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| Greenshoe: | $15 million
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| Maturity: | July 1, 2021
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| Bookrunners: | J.P. Morgan Securities LLC and JMP Securities LLC
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| Coupon: | 5.25%
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| Conversion premium: | 10%
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| Conversion price: | $11.50
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| Conversion rate: | 86.9943
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| Call options: | Non-callable
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| Put options | None
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| Pricing date: | June 28
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| Settlement date: | July 3
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| Talk: | Coupon of 4.75% to 5.25% and an initial conversion premium of 10% to 15%
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| Stock symbol: | NYSE: ABR
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| Stock price: | $10.45 at market close June 28
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| Market capitalization: | $692.4 million
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