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Arbor Realty Trust has priced an upsized private offering of USD 325 million in 6.25% convertible senior notes due 2029, increasing the size of the issue from the initially proposed USD 300 million. The offering is part of the company's capital management strategy and is expected to strengthen its financial position. The proceeds are expected to support the redemption of existing debt, share repurchases and general corporate purposes. The transaction also includes an option for initial purchasers to buy additional notes, subject to the terms of the offering.
Arbor Realty Trust Inc. has announced the pricing of its upsized private offering of USD 325 million aggregate principal amount of 6.25% convertible senior notes due 2029. The offering was increased from the previously announced USD 300 million, reflecting stronger demand from investors.
The convertible senior notes will mature in 2029 and carry an annual interest rate of 6.25%. Interest on the notes is scheduled to be paid semi-annually, with the first payment due in early 2027. The offering is expected to close in the coming days, subject to customary closing conditions. The company has also granted the initial purchasers an option to acquire up to an additional USD 50 million of notes within a limited period, which could increase the total size of the offering to USD 375 million if exercised in full.
The offering forms part of Arbor Realty Trust's broader capital management strategy. Earlier, the company had said that the proceeds would be used to redeem its outstanding USD 270 million 4.50% senior notes due later in 2026, fund share repurchases of up to around USD 130 million, and meet general corporate requirements. The notes are being offered through a private placement to qualified institutional buyers under Rule 144A of the Securities Act and have not been registered for public sale in the United States.
Arbor Realty Trust, a real estate investment trust focused on multifamily, single-family rental and commercial real estate finance, has regularly accessed the debt markets to refinance existing obligations and maintain liquidity. In 2025, the company raised USD 500 million through senior notes due 2030 as part of its refinancing strategy.
Source Reuters
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