Sachem Capital Corp. Announces Withdrawal of Public Debt Offering
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.
- 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.
- Withdrawal of the planned debt offering due to unfavorable market conditions and restrictive pricing.
Insights
The withdrawal of the debt offering by Sachem Capital Corp. reflects a cautious approach to current market conditions. The company has deemed the pricing for its intended notes as excessive and restrictive, which indicates that the cost of borrowing would have been too high. This decision demonstrates prudent financial management, prioritizing the long-term interests of the company and its shareholders.
Liquidity: The CEO's assurance that Sachem has ample liquidity through existing credit facilities and a liquid mortgage portfolio is significant. It suggests that the company is not in urgent need of capital and can continue operations and growth without the new debt.
Risk Management: Emphasizing disciplined underwriting and loan origination processes implies a focus on quality and risk-adjusted returns. This approach is essential for maintaining financial health, especially in a volatile market.
Implications for Investors: In the short term, the withdrawal might raise concerns among investors about the company's access to capital markets. However, the long-term outlook appears positive given the company's financial prudence. Investors should monitor the company's liquidity and ability to meet its obligations without the new debt.
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?
What was the nature of the withdrawn debt offering by Sachem Capital Corp. (SACH)?
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