Company: ABR-PF
Filing Date: 2025-06-02
Form Type: 8-K
Source: 0001628280-25-028832
Chunk: 2

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-06-02
Form: 8-K
Item: Item 2.03
Chunk 2
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 until its maturity and will account for the issuance of the Offered Notes on its balance sheet as a financing. The financing has an approximate two year replacement period that allows the principal proceeds and sale proceeds (if any) of the collateral interests and advances on the Class A-1R Notes to be reinvested in qualifying replacement collateral interests, subject to the satisfaction of certain conditions set forth in the Indenture. The proceeds of the issuance of the securities also includes $50,000,000 for the purpose of acquiring additional collateral interests for a period of up to 180 days from the Closing Date (or an additional 30 days in the case of collateral interests for which binding commitments to purchase have been entered into during the 180-day period). If the Issuer is unable to invest any financing capacity in suitable collateral interests within such time period, remaining cash and cash equivalents (excluding, at the election of the Collateral Manager (as defined below), an amount up to $10,000,000 to be held for the purchase of replacement collateral interests) will be used to redeem the Notes in order of seniority pursuant to the Indenture. The Class A-1R Notes represent a revolving commitment to advance up to $200,000,000, which can be used to fund future advances required pursuant to the collateral interests and acquire qualifying replacement collateral Interests. Following the 180-day ramp-up period and assuming that the entire commitment under the Class A-1R Notes is utilized to fund future advances or acquire qualifying replacement collateral interests, it is expected that the Issuer will own collateral interests with a face value of approximately $801,858,115.

The collateral interests acquired on the Closing Date were purchased by the Issuer from a consolidated subsidiary of Arbor, and the seller made certain representations and warranties to the Issuer with respect to the collateral interests it sold. If any such representations or warranties are materially inaccurate, the Issuer may compel the seller to repurchase the affected collateral interests from it for an amount not exceeding par plus accrued interest and certain additional charges, if then applicable. Additional collateral interests and replacement collateral interests are expected to be purchased on similar terms, pursuant to criteria and conditions set forth in the Indenture.

The Issuer entered into a Collateral Management Agreement with Arbor Realty Collateral Management, LLC, a consolidated subsidiary of Arbor (the “ Collateral Manager”) pursuant to which the Collateral Manager has agreed to advise the Issuer on certain matters regarding the collateral interests and other eligible investments securing the Notes. The Collateral