Arbor Realty Prices CDO

Arbor Realty Trust Inc., New York, has priced a collateralized debt obligation to be issued by two newly formed subsidiaries of the company.Arbor Realty, a real estate investment trust that invests in bridge and mezzanine loans tied to multifamily and commercial real estate, said the facility is expected to issue approximately $356 million of investment-grade debt. The company said it expects to retain an equity interest of approximately $119 million in the portfolio. The debt will be issued on a floating-rate basis at an initial weighted average spread of about 73 basis points over the three-month London interbank offered rate, the REIT said. The face value of the collateral in the initial portfolio, consisting primarily of bridge and mezzanine loans, is expected to be about $475 million. The company can be found online at http://www.arborrealtytrust.com.