Safehold Announces New $1.0 Billion Unsecured Revolving Credit Facility

Rhea-AI Summary

Safehold Inc. (NYSE: SAFE) has upgraded its credit facility, replacing a $600 million secured revolving credit with a new $1.0 billion unsecured revolving credit facility. This change results in a 30 basis point reduction in interest rates, now set at LIBOR plus 100 basis points. The facility matures in March 2024 and includes two extension options. CEO Jay Sugarman highlighted the move as a significant step in enhancing financial flexibility and accessing lower-cost capital.

Positive

• Increased credit facility size from $600 million to $1.0 billion.
• Reduction in interest rates by 30 basis points, improving cost efficiency.
• New facility supports scaling and operational growth.

Negative

• None.

Safehold Inc. (NYSE: SAFE), the creator of the modern ground lease industry, announced today that it has replaced its existing $600 million secured revolving credit facility with a new $1.0 billion unsecured revolving credit facility. The new facility will bear interest at a rate of LIBOR plus 100 basis points, a 30 basis point savings from the prior facility, subject to a pricing grid based on Safehold’s credit ratings.

“With its increased size and reduced cost, the new credit facility provides enhanced financial flexibility and supports Safehold’s ability to continue to scale,” said Jay Sugarman, Chairman and Chief Executive Officer. “After recently receiving investment grade credit ratings, the new credit facility marks a strong first step towards unlocking opportunities from the unsecured markets as we work to further deliver lower cost, more efficient capital to our customers.”

“This facility is also a testament to the creative thought leadership of our bank group and their support for the long-term vision of our unique and transformative modern ground lease business,” continued Sugarman.

The new unsecured revolving credit facility has a March 2024 maturity with two twelve-month extension options.

JPMorgan Chase Bank, N.A. is the administrative agent for this new revolving facility with JPMorgan Chase Bank, N.A., BofA Securities, Inc. and Goldman Sachs Bank USA, acting as the joint bookrunners and joint lead arrangers on the transaction; Barclays, Truist Securities, Inc., Mizuho Bank, Ltd. and Morgan Stanley Senior Funding are also acting joint lead arrangers. Capital One, N.A., Raymond James Bank, N.A. and Sumitomo Mitsui Banking Corporation will also act as lenders under this new revolving facility.

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 and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT) and is managed by its largest shareholder, iStar Inc., 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210331005996/en/

FAQ

What is the latest credit facility update for Safehold Inc. (SAFE)?

Safehold Inc. has replaced its $600 million secured credit facility with a new $1.0 billion unsecured revolving credit facility.

How much has Safehold Inc. saved on interest rates with the new credit facility?

Safehold Inc. has achieved a 30 basis point savings on interest rates with the new facility, now at LIBOR plus 100 basis points.

What is the maturity date of Safehold's new credit facility?

The new unsecured revolving credit facility from Safehold Inc. matures in March 2024.

Who are the key players involved in the new credit facility for Safehold Inc.?

JPMorgan Chase Bank, N.A. serves as the administrative agent, with BofA Securities, Inc. and Goldman Sachs Bank USA acting as joint bookrunners.