Through Wachovia, Arbor has two term loan facilities with an outstanding aggregate balance of $332 million and a working capital facility with an outstanding balance of $42 million. These facilities were consolidated into one term debt facility with an outstanding balance of $317 million and one working capital facility with an outstanding balance of $57 million. The maturity dates of the facilities were extended for three years, according to a release.

As part of the deal, Arbor issued Wachovia one million warrants at an average strike price of $4. Half of these warrants are exercisable immediately at a price of $3.50; 250,000 warrants are exercisable after July 23, 2010 at a price of $4; and 250,000 warrants are exercisable after July 23, 2011 at a price of $5. All warrants expire on July 23, 2015, the REIT says.

Additionally, the financial covenants on the facilities have been reduced, Arbor says. The REIT must now maintain a minimum quarterly liquidity of $7.5 million in cash and cash equivalents, a minimum quarterly GAAP net worth of $150 million and a quarterly ratio of no more than 4.5 to one in total liabilities to tangible net worth.