Safehold Inc. (NYSE: SAFE) has closed on a $400 million unsecured term loan with a fully extended maturity date of November 15, 2030, including two twelve-month extension options. The borrowing rate for this loan is set at SOFR plus 90 basis points, and the company has a SOFR swap at a 3.0% strike rate through April 2028 to hedge this transaction.
The proceeds from this loan will be used for debt repayment and general corporate purposes. Safehold has recently fully repaid $227 million of secured debt due 2027, unencumbering the twelve ground lease assets that had served as collateral. The new unsecured term loan replaces that capital and increases the company's liquidity position to $1.3 billion.
Brett Asnas, the Chief Financial Officer of Safehold, expressed that this financing represents a strong outcome for the company, increasing liquidity and proactively addressing their nearest-term maturity with flexible unsecured capital. He also highlighted the value of the support of their banking partners and the company's uniquely long-term and laddered balance sheet, which positions them well to deliver attractive capital solutions to customers and create value for shareholders.
JPMorgan Chase Bank, N.A. is acting as the Administrative Agent, with JPMorgan Chase Bank, N.A., 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.
This move is aimed at increasing liquidity and addressing the nearest-term maturity with flexible unsecured capital, and it replaces the recently fully repaid secured debt due 2027 while increasing the company’s liquidity position to $1.3 billion. Today the company's shares have moved 0.14% to a price of $14.04. For more information, read the company's full 8-K submission here.
