Mortgage REIT Arbor Realty slips on $325 mln convertible bond sale

Arbor Realty Trust

01/07/2026 12:37

** Residential/commercial mortgage REIT Arbor Realty Trust ABR.N shares down 1.3% to $5.35 before the bell after securing capital raise
** Uniondale, New York-based ABR late Tues announced pricing private offering of $325 mln 6.25% convertible bonds (CBs) due 2029
** Offering size boosted from $300 mln; initial conversion price of $6.10 represents 12.5% premium to stock's last close of $5.42
** Co intends to use net offering proceeds to fully redeem $270 mln 4.50% senior notes due Sept 1, 2026, any remainder for general purposes
** It will also use $102.7 mln to repurchase its shares as part of prepaid forward transactions to facilitate hedging by investors in the CBs
** Through Tues, ABR shares down 30% YTD for $1 bln market cap
** Of 5 analysts covering the stock, 1 rates "buy", 1 rates "hold", 3 recommend "sell"; median PT $8, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))