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GlobeSt.com UPDATE: Arbor Prices Second CDO at $356M

UNIONDALE, NY-In late December 2004 Arbor priced its first CDO at $305 million. The REIT will use proceeds from the new CDO to repay loans under its current repurchase agreements and warehouse credit facilities.

By Barbara Jarvie | Updated on December 20, 2005

(To read more on the debt and equity markets, click here.)

UNIONDALE, NY-Locally based Arbor Realty Trust has priced out its second collateralized debt obligation at $356 million. In late December 2004 Arbor priced its first CDO at $305 million. The REIT, which is focused on investing in real estate related bridge and mezzanine loans, preferred and direct equity investments, mortgage-related securities and other real estate-related assets, will use proceeds from the new CDO to repay borrowings under its current repurchase agreements and warehouse credit facilities.

The CDO will be issued by two newly formed subsidiaries of Arbor. Based on current balances within the collateral portfolio. Arbor expects to retain an equity interest in the portfolio of approximately $119 million. The debt will be issued on a floating rate basis at an initial weighted average spread of approximately 73 basis points over three-month Libor. The facility has a five-year replenishment period, giving Arbor the ability to replace assets within the facility as they pay off during this period.

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