Arbor RealtyTrust Inc. priced an underwritten public of $75 million of its 6.50%convertible senior notes due 2019.
The company also granted the underwriters a 30-day option topurchase up to $11.3 million of additional notes to cover overallotments, ifany.
The offering is expected to close on or about Oct. 5,subject closing conditions.
The notes carry an interest at an annual rate of 6.50%,payable semiannually in arrears on April 1 and Oct. 1 of each year, startingApril 1, 2017. The notes mature Oct. 1, 2019, unless earlier converted orrepurchased.
The notes will be convertible into cash, shares of thecompany's common stock or a combination thereof. The conversion rate willinitially equal 119.3033 common shares per $1,000 principal amount of notes,equivalent to an initial conversion price of approximately $8.38 per share,representing an approximate 10% conversion premium based on the company's Sept.29 closing stock price of $7.62 per share.
Arbor Realty Trust plans to use the net proceeds from theoffering to make investments relating to its business and for general corporatepurposes.
J.P. Morgan Securities LLC, JMP Securities LLC and Bank ofAmerica Merrill Lynch are acting as joint book-running managers for theoffering.