Monday 13th of December 2021 02:07:30 PM

Arbor Realty closes $2.10B CLO securitization, issues $.71B of notes

Close up of fountain pen on a balance sheet DNY59/E+ via Getty Images
  • Arbor Realty Trust (NYSE:ABR) closes a $2.10B commercial real estate mortgage loan securitization, through which $1.71B of investment-grade-rated notes were issued.
  • Arbor (ABR) retained subordinate interests in the issuing vehicle of $386M.
  • The $2.10B of collateral includes ~$315M of capacity to acquire additional loans for a period of up to 180 days from the closing date of the securitization.
  • The notes have an initial weighted average spread of 1.68% over one-month LIBOR, excluding fees and transaction costs. The facility has about a two-and-a-half-year replenishment period that allows the principal proceeds from repayments of the portfolio assets to be reinvested in qualifying replacement assets.
  • The offering of investment-grade-rated notes was made through a private placement. Arbor intends to own the portfolio of real estate-related assets through the vehicle until its maturity.
  • In September, Arbor (ABR) closed a $1.5B collateralized obligation securitization


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