NEW YORK - Safehold Inc. (NYSE: NYSE:SAFE), a real estate investment trust (REIT), has priced a public offering of senior unsecured notes, raising $300 million at an effective yield to maturity of 6.240%. The notes, due April 1, 2034, are to be settled on March 4, 2024, with the company fully and unconditionally guaranteeing them.
The offering's proceeds are slated for the repayment of borrowings under Safehold's 2021 unsecured revolving credit facility and for general corporate purposes, which may include investments in ground leases and funding obligations under existing commitments.
The company also disclosed a recent cash settlement gain of approximately $21 million from terminated hedges, which is expected to adjust the effective semi-annual yield to maturity to roughly 5.32%.
Major financial institutions, including J.P. Morgan Securities LLC, BofA Securities, Goldman Sachs & Co (NYSE:GS). LLC, and Truist Securities, Inc., served as joint book-running managers. Other participants as joint book-running managers were Mizuho Securities USA LLC, Barclays Capital Inc., SMBC Nikko Securities America, Inc., Morgan Stanley & Co (NYSE:MS). LLC, and RBC Capital Markets, LLC.
This offering is part of a shelf registration statement and prospectus filed with the Securities and Exchange Commission. The prospectus supplement and related documents can be obtained from the aforementioned financial institutions.
Safehold, known for acquiring and managing ground leases, aims to provide its stockholders with steady income growth and long-term capital appreciation.
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