Sachem Capital Corp. Announces Full Repayment and Delisting of Maturing Unsecured Unsubordinated Notes From NYSE American

Rhea-AI Summary

Sachem Capital Corp. (NYSE American: SACH) has announced the scheduled maturity and full repayment of its 6.875% unsecured, unsubordinated Notes (ticker: SACC) on December 30, 2024. The company will redeem the Notes at par value plus accrued and unpaid interest. The final trading day for these Notes is expected to be December 27, 2024, after which no Notes will remain outstanding. Note holders do not need to take any action and will be directly notified about the redemption process details.

Positive

• Full repayment of debt obligations as scheduled, demonstrating financial responsibility
• Ability to meet maturity obligations without refinancing or extension

Negative

• Loss of debt financing source requiring potential replacement capital

Insights

Fixed Income Analyst

This scheduled repayment of $28.36 million in 6.875% Notes represents a critical debt management milestone for Sachem Capital. The successful redemption at par demonstrates solid liquidity management, particularly notable given the current high-interest rate environment. For context, this repayment reduces Sachem's outstanding debt obligations and could potentially improve its debt-to-equity metrics. The company's ability to meet this maturity obligation on schedule, without refinancing, signals robust cash flow management. However, investors should monitor how this $28.36 million cash outflow impacts the company's lending capacity, as Sachem operates as a mortgage REIT that relies on leverage to generate returns. In simpler terms - imagine paying off a credit card in full; while it's good to clear the debt, it also means having less money available for new investments. The orderly delisting process and clear communication to noteholders reflects well on management's administrative capabilities.

REIT Specialist

Looking at the broader implications for Sachem's business model, this note repayment intersects with a challenging commercial real estate environment. With a market cap of $56.1 million, this $28.36 million debt repayment represents a substantial cash commitment relative to the company's size. The retirement of these notes at the original 6.875% rate is noteworthy, as current market rates for similar mortgage REIT debt instruments are significantly higher. The key question moving forward is Sachem's strategy for maintaining its loan portfolio growth without these funds. Small mortgage REITs typically need consistent access to capital to maintain their business model of originating short-term, high-yield mortgage loans. Think of it as a lending business needing to constantly refill its piggy bank to keep making new loans. The market will be watching closely for any new capital raising initiatives or potential adjustments to Sachem's lending strategy.

BRANFORD, Conn., Dec. 24, 2024 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) reminds holders that its 6.875% unsecured, unsubordinated Notes due December 30, 2024 (“Notes”), ticker symbol “SACC,” will mature on December 30, 2024, as scheduled. The company will redeem the Notes at par plus accrued and unpaid interest up to, but not including, the maturity date.

Sachem expects the last trading day for the Notes will be December 27, 2024.  After the maturity date, no Notes will remain outstanding.

Ticker	CUSIP	Maturity Date	Supplemental and Prospectus Link
SACC	78590A 307	12/30/2024	SEC Filing

Impact on Note Holders
The final payment with respect to the Notes, including principal and accrued interest, will be made on or before December 30, 2024, as described in the prospectus supplement. No action is required by Note holders, and they will be notified directly regarding the details of the redemption process.

About Sachem Capital Corp.
Sachem Capital Corp. is a mortgage REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property. It offers short-term (i.e., three years or less) secured, nonbanking loan to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The Company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and is personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.

Forward Looking Statements
This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. Such forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2023 filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 1, 2024 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 14, 2024. Because of these risks, uncertainties and assumptions, any forward-looking events and circumstances discussed in this press release may not occur. You should not rely upon forward-looking statements as predictions of future events. Neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the Company in the context of these risks and uncertainties.

Investors:
Email: investors@sachemcapitalcorp.com

FAQ

When will Sachem Capital's (SACH) 6.875% Notes mature and be repaid?

The Notes will mature and be repaid on December 30, 2024, with the last trading day expected to be December 27, 2024.

What is the redemption amount for SACH's maturing Notes (SACC)?

The Notes will be redeemed at par value plus accrued and unpaid interest up to, but not including, the maturity date.

Do SACH Note holders need to take any action for the December 2024 redemption?

No action is required by Note holders. They will be notified directly about the redemption process details.

What happens to SACC Notes after December 30, 2024?

After the maturity date, no Notes will remain outstanding and they will be delisted from NYSE American.