Sachem Capital Corp. Announces Registered Public Offering of Notes
Sachem Capital Corp. (NYSE American: SACH) announced a registered public offering of USD-denominated unsecured, unsubordinated Notes, due five years from issuance. The Notes are expected to be rated BBB+ by Egan-Jones Ratings Company, subject to market conditions. Egan-Jones is an independent rating agency recognized by the NAIC and ESMA. Oppenheimer & Co. Inc. will manage the offering as the sole-bookrunning manager. The SEC has declared the registration statement effective for this offering, which will be made only through a related prospectus supplement and accompanying base prospectus. Investors are advised to read these documents carefully before investing.
- Expected BBB+ rating by Egan-Jones, signaling moderate credit quality.
- Oppenheimer & Co. Inc. as sole-bookrunning manager adds credibility.
- SEC has declared the registration statement effective, clearing regulatory hurdles.
- The Notes are unsecured and unsubordinated, which may pose higher risks for investors.
- The rating by Egan-Jones is subject to market conditions and may change.
- The offering is contingent and may not proceed if market conditions are unfavorable.
Insights
Sachem Capital Corp.'s registered public offering of Notes represents an
These unsecured, unsubordinated Notes, anticipated to be rated BBB+ by Egan Jones, signal a moderate level of investment risk. This rating is generally seen as investment grade, indicating that while the company has a good probability of meeting its financial commitments, it is more susceptible to adverse economic conditions compared to higher-rated securities.
The involvement of Oppenheimer & Co. Inc. as the sole-bookrunning manager adds a layer of credibility, suggesting that Sachem Capital Corp. has sought a reputable and capable underwriter to ensure a successful offering.
From a retail investor's perspective, these Notes could offer a stable return, typically in the form of periodic interest payments, over the five-year period. However, it is essential to understand the risk associated with investing in unsecured, unsubordinated debt, especially in potentially volatile market conditions.
Investors should also be aware of the interest rate risk—since bond prices generally fall when interest rates rise, which could affect the value of these Notes in a rising rate environment.
Ultimately, the offering could provide Sachem Capital with the necessary financial resources to fuel growth, but it requires careful consideration regarding the balance of risk and return for investors.
BRANFORD, Conn., June 17, 2024 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) today announced the commencement of a registered public offering of USD-denominated unsecured, unsubordinated Notes due five years from the date of issuance (“Notes”), subject to market conditions.
The Notes are anticipated to be rated BBB+ by Egan Jones, Egan-Jones Ratings Company, an independent, unaffiliated rating agency, although this is contingent on prevailing market conditions. Egan-Jones is a Nationally Recognized Statistical Ratings Organization (NRSRO) and is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). Egan-Jones is also certified by the European Securities and Markets Authority (ESMA). A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The company has mandated Oppenheimer & Co. Inc. as the sole-bookrunning manager for the offering.
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.
A registration statement relating to, among other things, the Notes, was filed and has been declared effective by the U.S. Securities and Exchange Commission (SEC). The offering is being made only by means of a related prospectus supplement and an accompanying base prospectus forming part of the effective registration statement, copies of which may be obtained, when available, from: Oppenheimer & Co. Inc. by written request addressed to 85 Broad Street, 23rd Floor, New York, NY 10004 or by emailing john.tonelli@opco.com. Copies may also be obtained for free by visiting EDGAR on the SEC’s website at http://www.sec.gov.
The preliminary prospectus supplement, dated June 17th, 2024, together with an accompanying base prospectus, which have been filed with the SEC, contain this and other information about Sachem Capital Corp. as well as a description of the Notes and the terms of the offering and should be read carefully before investing. The information in the preliminary prospectus supplement and the accompanying base prospectus, and in this announcement, is not complete and may be changed. Investors are advised to carefully consider the investment objective, risks, charges and expenses of Sachem Capital Corp. before investing.
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
What is the expected rating for SACH's new Notes offering?
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When will the new SACH Notes be due?
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Are the SACH Notes secured or unsecured?
