By Wendy Van Sickle
Columbus, Ohio, July 17 – Arbor Realty Trust Inc. priced an upsized $130 million of three-year 5.25% convertible notes on Tuesday with a 10% initial conversion premium, according to a press release.
The deal size had initially been talked at $110 million, the coupon at 4.75% to 5.25% and the initial conversion premium at 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 $19.5 million, upsized from $16.5 million.
The notes are non-callable.
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.
| Issuer: | Arbor Realty Trust Inc.
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| Securities: | Convertible senior notes
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| Amount: | $130 million
|
| Greenshoe: | $19.5 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%
|
| Conversion premium: | 10%
|
| Conversion price: | $12.85
|
| Conversion rate: | 77.8331
|
| Call options: | Non-callable
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| Pricing date: | July 17
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| Settlement date: | July 20
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| Talk: | Coupon of 4.75% to 5.25% and an initial conversion premium of 10% to 15%
|
| Stock symbol: | NYSE: ABR
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| Stock price: | $11.68 at market close July 17
|
| Market capitalization: | $800.07 million
|
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