Safehold Secures $400M Unsecured Term Loan, Boosting Liquidity to $1.3B

By Hao Liu • Friday, November 28 10:22 • Permanent Link

Safehold Inc. (NYSE: SAFE) has announced the closure of a $400 million unsecured term loan, marking a significant development for the company. This new term loan, with a fully extended maturity date of November 15, 2030, includes two twelve-month extension options and carries a borrowing rate of SOFR plus 90 basis points due to the company's current A3 / A / A credit ratings. Safehold also has a SOFR swap at a 3.0% strike rate through April 2028 to hedge this transaction.

The proceeds from this loan will be utilized for debt repayment and general corporate purposes. Notably, the company recently fully repaid $227 million of secured debt due in 2027, consequently unencumbering twelve ground lease assets that previously served as collateral. The newly acquired unsecured term loan replaces this capital and significantly boosts the company’s liquidity position to $1.3 billion.

Brett Asnas, Chief Financial Officer, expressed satisfaction with the financing, highlighting its role in increasing liquidity and addressing the company's nearest-term maturity with flexible unsecured capital. He also emphasized the value of the banking partners' support and the company's uniquely long-term and laddered balance sheet, positioning Safehold to deliver attractive capital solutions to customers and create value for shareholders.

JPMorgan Chase Bank, N.A. is serving as the Administrative Agent for this transaction, while 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. are acting as Joint Bookrunners and Joint Lead Arrangers.

This development underscores Safehold's commitment to revolutionizing real estate ownership and providing a new and better way for owners to unlock the value of the land beneath their buildings. As the company continues to help owners of various high-quality properties generate higher returns with less risk, it seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.

Safehold's Senior Vice President and Head of Corporate Finance, Pearse Hoffmann, can be contacted for additional information regarding this announcement. 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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