Arbor Realty Trust (ABR) has announced a new offering of perpetual preferred stock.
The issue is non-qualified, but cumulative and will have an early redemption available to the company starting in 2026.
ABR has 1 other issue outstanding at this time–6.375% ABR-D which was issued in May (disclosure – I own this issue). This issue is not optionally redeemable until 2026.
The preliminary prospectus for the new issue can be found here.
Wow, they just filed for a $350 common offering. Arbor is locked and loaded.
6.25% 125 mil
Thanks, Bob-in-DE.
Tim, here is the FWP:
https://www.sec.gov/Archives/edgar/data/0001253986/000110465921100184/tm2123688d3_fwp.htm
Reminder: the symbol ABREV may soon change (perhaps ABREP).
The last issue has been topping out in the 25.60s so that seems to be how they priced the new one at 6.25%. Shouldn’t be much meat on the bones for flippers here, all else being equal.
Any thoughts about where the yield might be on this one? Seems a little strange to introduce a new preferred this close to the last one in May, but I’m guessing the market is getting concerned about the huge increase in ABR share count over the past couple of years, so they don’t want to raise more capital right now by issuing more common stock, so they go the preferred route and not spook the common. But who knows?
6.25%
ABREV