Safehold Inc. Secures $400 Million Unsecured Term Loan
Safehold Inc. (NYSE: SAFE) has recently made a significant move by closing a $400 million unsecured term loan. This strategic financial decision enhances the company's liquidity and positions it for future growth opportunities.
Details of the Term Loan
The newly acquired term loan features an extended maturity date of November 15, 2030, significantly bolstering the company's financial framework. Safehold's strong credit ratings of A3 / A- / A- have resulted in favorable borrowing rates set at SOFR plus 90 basis points. Additionally, the company has arranged a SOFR swap at a 3.0% strike rate set to last through April 2028, effectively hedging against interest rate fluctuations.
Use of Proceeds
Proceeds from this loan will be allocated toward debt repayment and other corporate needs. Recently, Safehold successfully paid off $227 million in secured debt that was set to mature in 2027. This move has freed up the twelve ground lease assets that were previously used as collateral, allowing for greater flexibility.
Leadership Perspective
Brett Asnas, the Chief Financial Officer of Safehold, expressed optimism about the new financing, stating, "This financing represents a strong outcome for Safehold, increasing liquidity and proactively addressing our nearest-term maturity with flexible unsecured capital. 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."
Involvement of Banking Partners
This secured credit facility has an impressive backing from notable financial institutions. JPMorgan Chase Bank, N.A. serves as the Administrative Agent alongside Bank of America, N.A., Goldman Sachs Bank USA, Mizuho Bank, Ltd., Royal Bank of Canada, and Truist Securities, Inc., all acting as Joint Bookrunners and Joint Lead Arrangers.
About Safehold Inc.
Safehold Inc. (NYSE: SAFE) is transforming how real estate ownership is perceived by providing innovative ways for owners to unlock the value beneath their properties. Since its inception in 2017, the company has pioneered the modern ground lease segment, enabling owners of multifamily, office, industrial, hospitality, student housing, life science, and mixed-use properties to achieve greater returns with minimized risk.
Taxed as a real estate investment trust (REIT), Safehold aims to offer its shareholders safe and growing income along with capital appreciation over the long term. The company's progressive approach continues to make waves in the real estate industry.
Company Contacts
For inquiries, please contact:
Pearse Hoffmann
Senior Vice President
Head of Corporate Finance
T 212.930.9400
E investors@safeholdinc.com
Frequently Asked Questions
What is the purpose of Safehold's $400 million loan?
The $400 million loan is aimed at debt repayment and general corporate purposes, enabling the company to strengthen its financial position.
Who are the key banking partners involved in the loan?
The loan was facilitated by JPMorgan Chase Bank, N.A. along with Bank of America, Goldman Sachs Bank USA, Mizuho Bank, Royal Bank of Canada, and Truist Securities, Inc.
How does this loan impact Safehold's operations?
This term loan increases Safehold's liquidity, enhances capital management, and reduces near-term maturity risks.
What are Safehold’s credit ratings?
Safehold holds strong credit ratings of A3 / A- / A-, which contribute to favorable borrowing rates for the company.
How does Safehold's business model work?
Safehold revolutionizes real estate ownership by offering ground leases that allow property owners to unlock land value while reducing financial risk.
