Safehold Increases Liquidity with $400M Loan

By Bobby Samwell • Thursday, November 27 10:26 • Permanent Link

Safehold Inc. has successfully closed on a $400 million unsecured term loan, increasing its liquidity position to $1.3 billion. The new term loan has a fully extended maturity date of November 15, 2030, with two twelve-month extension options. This financing move will be used for debt repayment and general corporate purposes.

The company recently fully repaid $227 million of secured debt due 2027, unencumbering twelve ground lease assets that had served as collateral. The new unsecured term loan replaces that capital and increases the company’s liquidity position.

Under the terms of the loan, the company's current A3 / A / A credit ratings provide for a borrowing rate of SOFR plus 90 basis points. Safehold also has a SOFR swap at a 3.0% strike rate through April 2028 that will hedge this transaction.

JPMorgan Chase Bank, N.A. is acting as the Administrative Agent, with Bank of America, N.A., Goldman Sachs Bank USA, Mizuho Bank Ltd., Royal Bank of Canada, and Truist Securities, Inc. serving as Joint Bookrunners and Joint Lead Arrangers.

Brett Asnas, Chief Financial Officer of Safehold, stated, “This financing represents a strong outcome for Safehold, increasing liquidity and proactively addressing our nearest-term maturity with flexible unsecured capital. We value the support of our banking partners, and believe Safehold’s uniquely long-term and laddered balance sheet positions us well to deliver attractive capital solutions to customers and create value for shareholders.”

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Safehold continues to help owners of high-quality multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties generate higher returns with less risk. The company seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.

Today the company's shares have moved 0.14% to a price of $14.04. For the full picture, make sure to review Safehold's 8-K report.

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