Safehold Inc. has just announced the establishment of an unsecured commercial paper note program in the United States, allowing its operating company to issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any one time of $750 million. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with all of the operating company's other unsecured senior indebtedness. These notes will be fully and unconditionally guaranteed by the company and the proceeds will be utilized for general corporate purposes.
The company anticipates cost of capital benefits in the commercial paper market versus its $2.0 billion revolving credit facility and plans to use the revolving credit facility as a liquidity backstop for the repayment of the notes issued under the commercial paper program.
Safehold Inc. is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. The company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.
Safehold Inc.'s senior vice president of Capital Markets and Investor Relations, Pearse Hoffmann, can be contacted for additional information. The market has reacted to these announcements by moving the company's shares 2.4% to a price of $18.95. For more information, read the company's full 8-K submission here.
