Safehold Announces Pricing of $400 Million of Senior Unsecured Notes Due 2035
Safehold (NYSE: SAFE) announced that its operating company, Safehold GL Holdings , has priced a $400 million public offering of 5.650% senior notes due 2035. The notes, priced at 98.812% of principal amount, will yield 5.804% semi-annually at maturity. Following a hedge termination with a $22 million cash settlement gain, the effective semi-annual yield is expected to be approximately 5.09%. The proceeds will be used for general corporate purposes, including repaying revolver borrowings, investing in ground leases, and funding existing commitments. The offering is expected to settle on November 14, 2024.
Safehold (NYSE: SAFE) ha annunciato che la sua società operativa, Safehold GL Holdings, ha fissato il prezzo per un emissione pubblica di 400 milioni di dollari di obbligazioni senior con un tasso del 5,650% dovute nel 2035. Le obbligazioni, fissate al 98,812% dell'importo principale, offriranno un rendimento del 5,804% semestrale alla scadenza. Dopo una risoluzione di copertura con un guadagno in contante di 22 milioni di dollari, il rendimento effettivo semestrale dovrebbe attestarsi intorno al 5,09%. I proventi saranno utilizzati per scopi aziendali generali, compresi il rimborso dei prestiti revolving, l'investimento in contratti di locazione e il finanziamento di impegni esistenti. Si prevede che l'emissione si risolva il 14 novembre 2024.
Safehold (NYSE: SAFE) anunció que su compañía operativa, Safehold GL Holdings, ha fijado el precio para una oferta pública de 400 millones de dólares de notas senior al 5.650% con vencimiento en 2035. Las notas, fijadas al 98.812% del valor nominal, rendirán un 5.804% semestral al vencimiento. Tras la terminación de un hedge con una ganancia de liquidación en efectivo de 22 millones de dólares, se espera que el rendimiento semestral efectivo sea aproximadamente del 5.09%. Los ingresos se utilizarán para fines corporativos generales, que incluyen el reembolso de préstamos rotativos, inversiones en arrendamientos de terreno y financiamiento de compromisos existentes. Se espera que la emisión se liquide el 14 de noviembre de 2024.
Safehold (NYSE: SAFE)은 운영 회사인 Safehold GL Holdings가 2035년 만기 5.650% 고급 채권의 4억 달러 공모를 가격책정했다고 발표했습니다. 이 채권은 원금의 98.812%에 가격이 매겨져 있으며, 만기 시 연 5.804%의 반기 수익률을 보입니다. 2200만 달러의 현금 정산 이익을 포함한 헤지 해지 이후, 실제 반기 수익률은 약 5.09%로 예상됩니다. 수익금은 일반 기업 목적, 회전 대출 상환, 토지 임대 투자 및 기존 약속 자금 지원에 사용될 예정입니다. 이번 공모는 2024년 11월 14일에 결제될 것으로 예상됩니다.
Safehold (NYSE: SAFE) a annoncé que sa société opérationnelle, Safehold GL Holdings, a fixé le prix d'une offre publique de 400 millions de dollars d'obligations senior à 5,650% arrivant à échéance en 2035. Les obligations, fixées à 98,812% de la valeur nominale, offriront un rendement de 5,804% semestriel à l'échéance. Suite à une résiliation de couverture avec un gain de règlement en espèces de 22 millions de dollars, le rendement effectif semestriel devrait être d'environ 5,09%. Les produits seront utilisés à des fins d'entreprise générales, y compris le remboursement des emprunts renouvelables, l'investissement dans des baux fonciers et le financement des engagements existants. L'offre devrait se régler le 14 novembre 2024.
Safehold (NYSE: SAFE) gab bekannt, dass ihre Betriebsgesellschaft, Safehold GL Holdings, eine öffentliche Anleiheemission über 400 Millionen US-Dollar mit einer Verzinsung von 5,650% und einer Fälligkeit im Jahr 2035 festgesetzt hat. Die Anleihen, die zu 98,812% des Nennwerts ausgegeben werden, werden bei Fälligkeit eine halbjährliche Rendite von 5,804% bieten. Nach der Beendigung eines Hedging mit einem Barausgleich von 22 Millionen US-Dollar wird die effektive halbjährliche Rendite voraussichtlich etwa 5,09% betragen. Die Einnahmen werden für allgemeine Unternehmenszwecke verwendet, einschließlich der Rückzahlung von revolvierenden Krediten, Investitionen in Grundpachtverträge und der Finanzierung bestehender Verpflichtungen. Die Emission soll am 14. November 2024 abgeschlossen werden.
- Secured $400 million in new financing through senior notes offering
- Realized $22 million cash settlement gain from hedge termination
- Lower effective yield (5.09%) achieved through hedge gain compared to nominal yield (5.804%)
- Taking on additional long-term debt obligations through 2035
- Notes priced at a discount (98.812% of principal amount)
Insights
The
The 2035 maturity provides long-term financing stability, while the unsecured nature of the notes offers financial flexibility. The strong syndicate of underwriters, led by major banks, indicates robust institutional interest. The intended use of proceeds for ground lease investments and debt refinancing should help optimize the capital structure while supporting core business growth.
This debt issuance strengthens Safehold's liquidity position and demonstrates continued access to capital markets. The ability to secure long-term financing with investment-grade characteristics is particularly noteworthy given current market conditions. The hedge settlement gain effectively reduces borrowing costs, showing proactive treasury management.
The flexibility to use proceeds for both debt refinancing and new investments provides strategic optionality. This balanced approach to capital allocation, combined with the unsecured nature of the notes, maintains financial agility while supporting growth initiatives in the ground lease sector.
The Company has recently terminated hedges and realized a cash settlement gain of approximately
The operating company intends to use the net proceeds from the offering for general corporate purposes, which may include repaying borrowings under its unsecured revolver, making additional investments in ground leases, providing for working capital and funding obligations under existing commitments.
J.P. Morgan Securities LLC, BofA Securities, Goldman Sachs & Co. LLC and Truist Securities, Inc. acted as joint book-running managers and representatives of the underwriters for the offering. Mizuho Securities
This offering is being made pursuant to an effective shelf registration statement and prospectus and related preliminary prospectus supplement filed by the Company and the operating company with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Copies of the prospectus supplement and related prospectus for this offering can be obtained, when available, from J.P. Morgan Securities LLC, 383 Madison Avenue,
Forward-Looking Statements:
This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "plan," "may," "should," "will," "would," "will be," "seek," "approximately," "pro forma," "contemplate," "aim," "continue," or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For example, the fact that the offering described above has priced may imply that the offering will close, but the closing is subject to conditions customary in transactions of this type and the closing may be delayed or may not occur at all. For a further discussion of the factors that could cause the Company's future results to differ materially from any forward-looking statements, see the reports and other filings by the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2023. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.
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.
Company Contact:
Pearse Hoffmann
Senior Vice President
Capital Markets & Investor Relations
T 212.930.9400
E investors@safeholdinc.com
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SOURCE Safehold
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