Arbor Realty Trust, Inc. (NYSE: ABR) has declared the pricing of a public offering of 7,500,000 shares of common stock. The company is projecting a gross profit of around $147.8 million before underwriting discounts and commissions and expenses. The offering is dependent on customary closing conditions and is likely to complete on November 4, 2021.
Moreover, Arbor Realty has disclosed that it has provided underwriters a 30-day option to acquire up to an extra 1,125,000 shares of its common stock. The Company is planning to utilize the net profit from the offering to make investments involving its business and for general corporate purposes.
Gross Profit Utilization
Arbor Realty has disclosed that it is planning to use the net profit from this offering to acquire 462,500 shares of its common stock from its CEO, Arbor Commercial Mortgage, LLC, and/or estate planning family vehicles founded by its CEO. Furthermore, ABR also plans to acquire 25,000 shares of its common stock from its CFO.
Additionally, ABR disclosed that it has decided to buy 20,000 shares of its common stock from its Executive VP, Treasury and Servicing, and 35,000 shares of its common stock from its Director and the COO of Arbor Management, LLC. Finally, a portion of the profit will be used to buy 20,000 shares of its common stock from its Executive VP, Structured Stabilization, at the same price the underwriters will acquire the shares in this offering.
ABR revealed that the underwriters utilize their option to acquire additional shares of common stock, the Company plans to use the net profit to make investments related to its business and for general corporate purposes. Moreover, the joint book-running managers for the offering are J.P. Morgan, JMP Securities, and Raymond James.