Arbor Realty Trust Enters into Two New Financing Facilities and Amends an Existing Facility
UNIONDALE, N.Y., Nov. 8 /PRNewswire-FirstCall/ -- Arbor Realty Trust, Inc. (NYSE: ABR), a real estate investment trust focused on the business of investing in real estate related bridge and mezzanine loans, preferred and direct equity investments, mortgage-related securities and other real estate related assets, today announced that the Company entered into two new financing agreements with one of its lead banks. The new financing agreements replace short-term facilities with longer term debt and eliminate mark-to- market risk as it relates to interest rate spreads.
One of the two new credit agreements includes a $473 million term loan with a $100 million revolving commitment. The $100 million revolving commitment will be used exclusively to finance new originations. When the term loan balance is reduced to $400 million, the revolving commitment can be increased up to $200 million. The second agreement is a $69 million term loan. All of the credit agreements have a commitment period of two years with a one- year extension option to November 2010. The two new agreements replace the two of the Company's existing agreements with this financial institution.
"We are very excited about the new facilities, which have locked up roughly $600 million of committed financing for up to three years and have eliminated the ability for the bank to mark-to-market the assets for any change in market spreads," said Ivan Kaufman, Chairman and Chief Executive Officer of Arbor. "In addition, combined with our CDOs and trust preferred securities, we now have a majority of our committed debt non mark-to-market and secured for the long term."
In addition to the new agreements, the Company also amended a bridge loan warehouse agreement with a second financial institution that increased the committed amount of the facility from $75 million to $90 million and extended the maturity from October 2007 to October 2008.
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. is a real estate investment trust which invests in a diversified portfolio of multifamily and commercial real estate related bridge and mezzanine loans, preferred equity investments, mortgage related securities and other real estate related assets. Arbor commenced operations in July 2003 and conducts substantially all of its operations through its operating partnership, Arbor Realty Limited Partnership and its subsidiaries. Arbor is externally managed and advised by Arbor Commercial Mortgage, LLC, a national commercial real estate finance company operating through 11 sales and origination support offices in the US that specializes in debt and equity financing for multi-family and commercial real estate.
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, continued ability to source new investments, changes in interest rates and/or credit spreads, changes in the real estate markets, and other risks detailed in Arbor's Annual Report on Form 10-K for the year ended December 31, 2006 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.
SOURCE Arbor Realty Trust, Inc.
CONTACT: Paul Elenio, Chief Financial Officer, +1-516-832-7422,
pelenio@arbor.com, or Media: Bonnie Habyan, SVP of Marketing, +1-516-229-6615,
bhabyan@arbor.com, both of Arbor Realty Trust, Inc.;
Investors, Stephanie Carrington of The Ruth Group,
+1-646-536-7017, scarrington@theruthgroup.com /
