Safehold Announces Public Offering and Concurrent Private Placement

Rhea-AI Summary

Safehold Inc. (NYSE: SAFE) announced a public offering of 1,750,000 shares of common stock, with an option for underwriters to purchase an additional 262,500 shares. Concurrently, Safehold will sell shares equivalent to 64.93% of the total offering to iStar Inc. (NYSE: STAR) for $185 million. The proceeds will be used for investments in ground leases, repaying credit facility borrowings, and general corporate purposes. This offering is part of an effective shelf registration filed with the SEC.

Positive

• Proceeds will fund investments in ground leases, enhancing long-term returns.
• Concurrent placement with iStar Inc. provides substantial capital influx.

Negative

• Dilution risk for existing shareholders due to the public offering.
• Market uncertainty could impact stock performance following the offering announcement.

NEW YORK, March 2, 2022 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE) (the "Company") announced today that it has commenced an underwritten public offering to sell 1,750,000 shares of its common stock. The Company intends to grant the underwriters in the offering a 30-day option to purchase up to an additional 262,500 shares of its common stock.

Morgan Stanley, BofA Securities, Goldman Sachs & Co. LLC, and J.P. Morgan will act as joint book-running managers for the public offering.

Concurrently with the completion of the public offering, Safehold will sell to iStar Inc. (NYSE: STAR) in a private placement a number of shares of common stock equal to 64.93% of the total number of shares of common stock sold in the offering and the concurrent private placement (excluding any shares sold pursuant to the underwriters' option to purchase additional shares) or, if less, shares of common stock with an aggregate purchase price of $185 million at the public offering price per share, subject to rounding.

The Company intends to use the net proceeds from the public offering and concurrent private placement to make additional investments in ground leases, to repay outstanding borrowings under the Company's revolving credit facility and for general corporate purposes.

This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

The public offering is being made pursuant to an effective shelf registration statement and a preliminary prospectus supplement and accompanying prospectus filed by the Company with the Securities and Exchange Commission ("SEC"). Before you invest, you should read the preliminary prospectus supplement and accompanying prospectus and other documents the Company has filed with the SEC for more complete information about the Company and the public offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. The Company or any underwriter or any dealer participating in the public offering will arrange to send you the preliminary prospectus supplement and accompanying prospectus if you request it by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, New York 10014; BofA Securities, 200 North College Street, 3rd Floor, NC1-004-03-43, Charlotte, NC 28255-0001, Attention: Prospectus Department or by email dg.prospectus_requests@bofa.com; Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone at (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com; and, J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 1-866-803-9204 or email: prospectus-eq_fi@jpmchase.com.

About Safehold:

Safehold Inc. (NYSE: SAFE) is a publicly traded REIT that originates and acquires ground leases in order to generate attractive long-term risk-adjusted returns.

Company Contact:
Jason Fooks, Senior Vice President of Investor Relations & Marketing, T 212.930.9400, investors@safeholdinc.com

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SOURCE Safehold

FAQ

What is the size of the public offering by Safehold and STAR?

Safehold is offering 1,750,000 shares, with an option for an additional 262,500 shares. STAR will acquire shares equivalent to 64.93% of the total offering.

What will be the use of proceeds from Safehold's public offering?

The proceeds will be used for investments in ground leases, repayment of credit facility borrowings, and general corporate purposes.

How does the public offering affect Safehold's stock price?

The public offering may lead to dilution of existing shares, potentially impacting Safehold's stock price and market perception.