Sachem Capital Corp. Announces Withdrawal of Public Debt Offering

Rhea-AI Summary

Sachem Capital Corp. (NYSE American: SACH) announced the withdrawal of its planned debt offering, initially intended to be USD-denominated unsecured, unsubordinated notes due in five years.

The decision was made due to unfavorable market conditions regarding pricing, which the company deemed excessive and restrictive. CEO John Villano assured shareholders and noteholders that Sachem Capital has sufficient liquidity through its existing credit facilities and liquid mortgage portfolio. The company remains committed to its disciplined underwriting and loan origination processes to maximize risk-adjusted returns and protect capital. This move aims to safeguard the long-term interests of Sachem's business and its shareholders.

Positive

• Sachem Capital Corp. maintains ample liquidity through existing credit facilities and a liquid mortgage portfolio.
• The company continues disciplined underwriting and loan origination processes to maximize risk-adjusted returns and protect capital.

Negative

• Withdrawal of the planned debt offering due to unfavorable market conditions and restrictive pricing.

News Market Reaction – SACH

+0.78%

1 alert

+0.78% News Effect

On the day this news was published, SACH gained 0.78%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

BRANFORD, Conn., June 27, 2024 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) today announced that it is withdrawing its previously announced debt offering. The company had intended to offer USD-denominated unsecured, unsubordinated notes due five years from the date of issuance. The company has concluded that current market conditions regarding pricing were excessive and restrictive and, thus, not in the best interest of the company and its shareholders.

John Villano, CEO of Sachem Capital Corp., commented: “We want to assure our shareholders and noteholders that Sachem has ample liquidity through its existing credit facilities and liquid mortgage portfolio to continue to execute on the business consistent with past practice. In addition, Sachem will continue its disciplined underwriting and loan origination processes to maximize risk adjusted returns for shareholders and to protect our capital. Our decision to withdraw our previously announced debt offering was based solely on our determination that the proposed pricing of the offering was unfavorable to the long-term interests of Sachem’s business.”

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in this offering or any other securities nor will there be any sale of the Notes or any other securities referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

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 loans 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.

Investors:
Email: investors@sachemcapitalcorp.com

FAQ

Why did Sachem Capital Corp. (SACH) withdraw its debt offering on June 27, 2024?

Sachem Capital Corp. withdrew its debt offering due to unfavorable market conditions and restrictive pricing, which were deemed not in the best interest of the company and its shareholders.

What was the nature of the withdrawn debt offering by Sachem Capital Corp. (SACH)?

The withdrawn debt offering was intended to be USD-denominated unsecured, unsubordinated notes due five years from the date of issuance.

How does Sachem Capital Corp. (SACH) plan to ensure liquidity after withdrawing the debt offering?

Sachem Capital Corp. plans to ensure liquidity through its existing credit facilities and liquid mortgage portfolio.

What measures will Sachem Capital Corp. (SACH) continue to follow after withdrawing the debt offering?

Sachem Capital Corp. will continue its disciplined underwriting and loan origination processes to maximize risk-adjusted returns and protect capital.

What was the CEO's statement regarding the withdrawal of the debt offering by Sachem Capital Corp. (SACH)?

CEO John Villano assured shareholders and noteholders that the decision was based on the unfavorable pricing of the offering, which was not in the best interest of the company’s long-term business interests.