UNIONDALE, N.Y., April 27, 2020 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR) announced today that it has closed the private placement of $40 million aggregate principal amount of 8.00% senior unsecured notes due April 30, 2023.

The Company intends to use the net proceeds from the offering to repay secured indebtedness, make investments relating to its business and for general corporate purposes.

“We are extremely pleased with our ability to issue three-year, 8%, unsecured debt in a very challenging environment, which continues to demonstrate the value of our franchise and the strong relationships we have with our investors,” said Ivan Kaufman, President and Chief Executive Officer. “As I mentioned in our shareholder letter on April 13, 2020, 45 days ago we had approximately $235 million of debt outstanding that was subject to margin calls on our securities. Through cash pay downs and the restructuring of a portion of this debt, we reduced this outstanding balance to $79 million. This capital raise will allow us to further reduce this debt leaving us with only approximately $40 million of debt remaining against our securities with potential margin call exposure.”

Piper Sandler & Co. acted as placement agent for this offering.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. (NYSE:ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a Fannie Mae DUS® lender and Freddie Mac Optigo Seller/Servicer. Arbor’s product platform also includes CMBS, bridge, mezzanine and preferred equity lending.