Arbor Realty Trust Inc. priced a public offering of 6.5 million common shares for total expected gross proceeds of about $91.9 million before underwriting discounts and commissions and expenses.
The offering, which was upsized from the previously announced 6 million shares, is expected to close Dec. 12.
The company granted the underwriters a 30-day option to purchase up to an additional 975,000 common shares.
Arbor Realty Trust intends to use the net proceeds from the offering to make investments relating to its business and for general corporate purposes.
The company also plans to use a portion of the net proceeds to buy an aggregate of 650,000 shares, or 747,500 shares if the underwriters exercise in full their overallotment option, of its common stock from CEO Ivan Kaufman, Arbor Commercial Mortgage LLC and/or an estate planning family vehicle established by the company's CEO. These shares will be bought at the same price the underwriters will purchase the shares in the offering.
J.P. Morgan Securities LLC, JMP Securities LLC and Raymond James & Associates Inc. are joint book-running managers for the offering.