Company: ABR-PF
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021683
Chunk: 71

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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secured notes are not redeemable by us prior to maturity (August 2025) and are convertible by the holder into, at our election, cash, shares of our common stock, or a combination of both, subject to the satisfaction of certain conditions and during specified periods. The conversion rates are subject to adjustment upon the occurrence of certain specified events and the holders may require us to repurchase all, or any portion, of their notes for cash equal to 100% of the principal amount, plus accrued and unpaid interest, if we undergo a fundamental change specified in the agreements. 

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Table of ContentsARBOR REALTY TRUST, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The UPB and net carrying value of our convertible notes are as follows (in thousands):PeriodUPBUnamortized DeferredFinancing FeesNet CarryingValue March 31, 2025$287,500 $945 $286,555 December 31, 2024$287,500 $1,647 $285,853 During both the three months ended March 31, 2025 and 2024, we incurred interest expense on the notes totaling $6.1 million, of which $5.4 million and $0.7 million related to the cash coupon and deferred financing fees, respectively. Including the amortization of the deferred financing fees, our weighted average total cost of the notes was 8.43% at both March 31, 2025 and December 31, 2024. At March 31, 2025, the 7.50% convertible senior notes had a conversion rate of 61.2751 shares of common stock per $1,000 of principal, which represented a conversion price of $16.32 per share of common stock.Junior Subordinated NotesThe carrying values of borrowings under our junior subordinated notes were $144.9 million and $144.7 million at March 31, 2025 and December 31, 2024, respectively, which is net of a deferred amount of $8.1 million and $8.3 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $1.3 million and $1.4 million, respectively. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a floating rate