Safehold Inc. has announced the pricing of $400 million of senior unsecured notes due 2035. The notes will mature on January 15, 2035, and the offering is expected to settle on November 14, 2024. The notes were priced at 98.812% of the principal amount, resulting in an effective semi-annual yield to maturity of 5.804%.
In addition, the company has recently terminated hedges and realized a cash settlement gain of approximately $22 million. Factoring in this gain, the company expects to recognize an effective semi-annual yield to maturity of approximately 5.09%.
The net proceeds from the offering are intended to be used for general corporate purposes, including repaying borrowings under its unsecured revolver, making additional investments in ground leases, providing for working capital, and funding obligations under existing commitments.
The joint book-running managers and representatives of the underwriters for the offering include J.P. Morgan Securities LLC, BofA Securities, Goldman Sachs & Co. LLC, and Truist Securities, Inc. Additionally, several other firms are acting as joint book-running managers and co-managers for the offering.
This offering is being made pursuant to an effective shelf registration statement and prospectus filed by the company and the operating company with the Securities and Exchange Commission. Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $20.13. Check out the company's full 8-K submission here.
