Exhibit 99.1
(LOGO)
PRESS RELEASE
Contacts: Investors:
Arbor Realty Trust, Inc. Stephanie Carrington/ Denise Roche
Rick Herbst, Chief Financial Officer The Ruth Group
516-832-7408 646-536-7017 / 7008
rick.herbst@thearbornet.com scarrington@theruthgroup.com
droche@theruthgroup.com
Media:
Bonnie Habyan, SVP of Marketing
516-229-6615
bonnie.habyan@thearbornet.com
ARBOR REALTY TRUST CLOSES COLLATERALIZED DEBT OBLIGATION
NEW YORK, NY, January 19, 2005 - Arbor Realty Trust, Inc. (NYSE: ABR) today
announced the closing of a non-recourse collateralized debt obligation through
two of its subsidiaries, Arbor Realty Mortgage Securities Series 2004-1, Ltd.,
the issuer, and Arbor Realty Mortgage Securities Series 2004-1 LLC, the
co-issuer. Approximately $305 million of investment grade-rated floating-rate
notes were issued and an Arbor subsidiary retained the equity interest in the
issuer with a value of approximately $164 million.
The notes have an initial weighted average spread of approximately 77 basis
points over three-month LIBOR. The facility has a four-year replenishment period
that allows the principal proceeds from repayments of the collateral assets to
be reinvested in qualifying replacement assets, subject to certain conditions.
"We are very pleased to have completed our first CDO, as this unique structure
will strengthen our franchise and benefit our shareholders," said Chief
Executive Officer Ivan Kaufman. "The closing of this transaction solidifies our
borrowing capability in a more cost-effective and structured way. Our cost of
funds has been reduced and the term of the CDO is longer than the terms of our
other credit facilities. In addition, the CDO structure provides us with greater
flexibility in financing our future loans and investments. Loans can now be
warehoused temporarily in our other credit facilities, but can be funded within
a CDO structure at an appropriate time. As a result, we believe the completion
of the CDO enhances our ability to generate earnings and provides a strong
foundation for future growth."
The offering of the notes evidencing the collateralized debt obligations was
made pursuant to a private placement. The notes were issued under a common
indenture and are secured by a portfolio of real estate-related assets with a
face value of approximately $441 million, consisting primarily of bridge loans,
mezzanine loans and junior participating interests in first mortgages, and by
approximately $28 million of cash available for acquisitions of loans and other
permitted investments.
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Arbor intends to own the portfolio of real estate-related assets until its
maturity and will account for this transaction on its balance sheet as a
financing. Arbor will use the proceeds of this offering to repay borrowings
under its current repurchase agreements and warehouse credit facilities.
Wachovia Securities acted as the sole manager for this transaction. The CDO
notes were rated by Fitch Ratings, Standard & Poor's and Moody's Investors
Service.
The notes offered pursuant to the CDO are not registered under the Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements.
This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state or
jurisdiction.
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. is a real estate investment trust, which invests in a
diversified portfolio of multi-family and commercial real estate related bridge
and mezzanine loans, preferred equity investments, mortgage related securities
and other real estate related assets. Arbor commenced operations in July 2003
and conducts substantially all of its operations through its operating
partnership, Arbor Realty Limited Partnership. Arbor is externally managed and
advised by Arbor Commercial Mortgage, LLC, a national commercial real estate
finance company operating through 15 offices in the US that specializes in debt
and equity financing for multi-family and commercial real estate.
Safe Harbor Statement
Certain items in this press release may constitute forward-looking statements
within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on management's
current expectations and beliefs and are subject to a number of trends and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. Arbor can give no assurance that
its expectations will be attained. Factors that could cause actual results to
differ materially from Arbor's expectations include, but are not limited to,
continued ability to source new investments, changes in interest rates and/or
credit spreads, changes in the real estate markets, and other risks detailed
from time to time in the Arbor's periodic and other reports filed with the SEC.
Such forward-looking statements speak only as of the date of this press release.
Arbor expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward- looking statements contained herein to
reflect any change in Arbor's expectations with regard thereto or change in
events, conditions, or circumstances on which any such statement is based.