Safehold Announces $400 Million Unsecured Term Loan
Safehold (NYSE: SAFE) closed a $400 million unsecured term loan with a fully extended maturity of November 15, 2030 (two twelve-month extension options).
Sentiment and the balance of points
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Rhea-AI Summary
Safehold (NYSE: SAFE) closed a $400 million unsecured term loan with a fully extended maturity of November 15, 2030 (two twelve-month extension options). The facility carries a borrowing rate tied to SOFR + 90 bps based on the company's A3 / A- / A- credit ratings and is hedged by a SOFR swap at a 3.0% strike through April 2028. Proceeds will repay debt and support general corporate purposes, including full repayment of $227 million of secured debt that unencumbered twelve ground-lease assets, and increase liquidity to $1.3 billion.
Positive
- Closed $400 million unsecured term loan
- Liquidity increased to $1.3 billion
- Repaid and replaced $227 million secured debt
- Unencumbered 12 ground lease assets
- SOFR swap hedge at 3.0% through Apr 2028
Negative
- Variable-rate exposure resumes after April 2028 when hedge ends
Details
News Market Reaction – SAFE
On Nov 26, the first trading day after this news, SAFE closed 0.14% above the previous close.
Data tracked by StockTitan Argus for the Nov 26 session.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Proceeds will be used for debt repayment and general corporate purposes. The Company recently fully repaid
"This financing represents a strong outcome for Safehold, increasing liquidity and proactively addressing our nearest-term maturity with flexible unsecured capital," said Brett Asnas, Chief Financial Officer. "We value the support of our banking partners, and believe Safehold's uniquely long-term and laddered balance sheet positions us well to deliver attractive capital solutions to customers and create value for shareholders."
JPMorgan Chase Bank, N.A. is acting as the Administrative Agent. JPMorgan Chase Bank, N.A., Bank of America, N.A., Goldman Sachs Bank USA, Mizuho Bank, Ltd., Royal Bank of
About Safehold:
Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders. Additional information on Safehold is available on its website at www.safeholdinc.com.
Company Contact:
Pearse Hoffmann
Senior Vice President
Head of Corporate Finance
T 212.930.9400
E investors@safeholdinc.com
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SOURCE Safehold
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