ABR•ABR•Arbor Realty Trust priced an upsized $325 million 6.25% convertible senior note due 2029 with a 13-day option for $50 million and an initial conversion price of $6.10 per share (12.5% premium). Proceeds will redeem $270 million of 4.50% notes due September 2026 and fund $11.6 million direct plus $102.7 million prepaid forward share repurchases.
Arbor Realty Trust launched an upsized private placement of $325 million aggregate principal amount of 6.25% convertible senior notes due July 1, 2029, with settlement expected on July 6, 2026. The offering includes a 13-day option for initial purchasers to acquire an additional $50 million of notes on identical terms.
The notes accrue interest semiannually and are senior unsecured obligations with no redemption right before maturity. They convert into approximately 164.0016 shares per $1,000 principal (implying a $6.10 conversion price), representing a 12.5% premium to the company’s $5.42 closing share price on June 30, 2026.
Arbor Realty intends to allocate gross proceeds to redeem $270 million of 4.50% senior notes maturing September 1, 2026, repurchase $11.6 million of common shares in negotiated transactions and fund a $102.7 million prepaid forward share repurchase, with any remaining funds for general corporate purposes.
The $102.7 million prepaid forward transaction will repurchase approximately 18.9 million shares through a forward counterparty, facilitating derivative hedges by note investors. This structure may influence market supply of shares and hedge positions, potentially affecting the company’s stock price around the pricing date.
