Arbor Realty Trust Closes a $1.15 Billion Repurchase Facility to Unwind Two Outstanding Collateralized Loan Obligations

Rhea-AI Summary

Arbor Realty Trust (NYSE: ABR) has announced the closing of a $1.15 billion repurchase facility with JPMorgan Chase Bank. The company will transfer $1.43 billion of assets into this facility, with $1.34 billion coming from two existing collateralized loan obligations (CLOs) set for redemption on March 17, 2025.

The new facility offers several advantages:

• 80% leverage compared to the CLOs' 77%
• Lower pricing than the existing CLOs
• Primarily nonrecourse structure
• Two-year replenishment period for reinvesting principal proceeds
• $100 million accordion feature exercisable within 90 days

This strategic transaction has generated approximately $80 million in additional liquidity and enhanced returns through improved leverage and reduced pricing. All assets being pledged have been recently appraised with confirmed values.

Positive

• Generated $80 million in additional liquidity
• Increased leverage from 77% to 80%
• Reduced pricing compared to existing CLOs (previously SOFR+2.24%)
• $100 million accordion feature available
• Two-year replenishment period for reinvesting principal proceeds

Negative

• Increased leverage exposure from 77% to 80%

News Market Reaction

+2.90%

1 alert

+2.90% News Effect

On the day this news was published, ABR gained 2.90%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

UNIONDALE, N.Y., March 13, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced the closing of a $1.15 billion repurchase facility (the "Repurchase Facility"), with JPMorgan Chase Bank, N.A. In connection with this transaction, the Company transferred approximately $1.43 billion of assets into this Repurchase Facility, $1.34 billion of which were in two of the Company’s existing collateralized loan obligations (the “CLOs”), that the Company expects to redeem, in full and at par, on March 17, 2025, with proceeds from the Repurchase Facility. The assets being pledged were all recently appraised with values confirmed. The two CLOs being redeemed have combined leverage of approximately 77%, with pricing of SOFR plus 2.24%.

The Repurchase Facility is match funded with 80% leverage, pricing that is well below the CLOs being redeemed and is primarily nonrecourse to the Company. Additionally, the Repurchase Facility includes a two-year replenishment period, enabling the reinvestment of principal proceeds from asset repayments into qualifying replacement assets, and contains a $100 million accordion feature, exercisable at the Company’s election within 90 days of closing.

As a result of these transactions, the Company has created approximately $80 million of additional liquidity and has increased the returns on these assets through enhanced leverage and reduced pricing. “This is an incredibly innovative transaction that creates tremendous efficiencies for us going forward,” said Ivan Kaufman, the Company’s Chief Executive Officer. “This result also continues to reinforce the quality of our loan book and the depth of our banking relationships.”

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, single-family rental (SFR) portfolios, 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 leading Fannie Mae DUS® lender, Freddie Mac Optigo® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine, and preferred equity loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality, and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2024 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

Contact:	Arbor Realty Trust, Inc. Investor Relations 516-506-4200 InvestorRelations@arbor.com

FAQ

What is the size and purpose of ABR's new repurchase facility with JPMorgan?

ABR closed a $1.15 billion repurchase facility to unwind two CLOs, transferring $1.43 billion in assets with $1.34 billion from existing CLOs set for redemption on March 17, 2025.

How much additional liquidity will ABR generate from this repurchase facility?

The transaction creates approximately $80 million of additional liquidity for ABR.

What are the key terms of ABR's new repurchase facility?

The facility offers 80% leverage, pricing below SOFR+2.24%, a two-year replenishment period, and a $100 million accordion feature exercisable within 90 days.

When will ABR redeem the existing CLOs being replaced by the repurchase facility?

ABR expects to redeem the CLOs in full and at par on March 17, 2025.

How does the leverage compare between ABR's new facility and existing CLOs?

The new repurchase facility provides 80% leverage, compared to 77% leverage in the existing CLOs being redeemed.