Arbor Realty Trust plans $110 million three-year convertibles to yield 4.75%-5.25%, up 10%-15%

By Rebecca Melvin

New York, July 17 – Arbor Realty Trust Inc. plans to price $110 million of three-year convertible notes Tuesday afternoon that were talked at 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 and JMP are bookrunners for the Rule 144A deal, which carries a greenshoe of $16.5 million.

The company intends to use a portion of the proceeds to exchange its existing 5.375% convertible senior notes due 2020 for cash and stock. The remaining proceeds will be used for general corporate purposes.

Arbor priced $100 million of three-year convertible notes on June 29 at the cheap end of the same talk for a 5.25% coupon and 10% premium.

Arbor Realty Trust is a Uniondale, N.Y.-based real estate investment trust and national direct lender.

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