Arbor Realty Trust Restructures Financing Facilities

state investment trust Arbor Realty Trust Inc. says it has completed a restructuring of its financing facilities, totaling $374 million, with Wachovia Bank for three years and has agreed in principle to amend its management agreement with Arbor Commercial Mortgage LLC, as manager. The $374 million of restructured indebtedness with Wachovia was composed of two term loan facilities with an aggregate outstanding balance of $332 million and a working capital facility with an outstanding balance of $42 million. This debt restructuring resulted in the consolidation of the three facilities 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 company says. Among other components of the restructuring, the facilities' maturity dates were extended for three years. The term loan facility requires a $48 million reduction over the three-year term, with approximately $8 million in reductions due every six months beginning in December. ‘We are very pleased with our success in restructuring our debt with Wachovia, as well as all of our other short-term debt facilities,’ says Ivan Kaufman, Arbor's CEO. ‘This, combined with our ability to restructure our trust preferred securities, has put us in a position where all of our non-[collateralized debt obligation] debt has been modified and/or extended for the long term.’ SOURCE: Arbor Realt


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