Safehold Announces Public Offering and Concurrent Private Placement

Rhea-AI Summary

Safehold Inc. (NYSE: SAFE) announced a public offering of 2,000,000 shares of its common stock, with an option for underwriters to purchase an additional 300,000 shares. Concurrently, the company will privately sell shares to iStar Inc. worth $50 million. The net proceeds will be used for investments in ground leases, repaying borrowings, and general corporate purposes. Goldman Sachs, BofA Securities, J.P. Morgan, and Morgan Stanley are the joint book-running managers for this offering.

Positive

• Intended use of proceeds for investments in ground leases.
• Repayment of outstanding borrowings, strengthening financial position.

Negative

• Possible dilution of existing shares due to additional stock offerings.

NEW YORK, Sept. 21, 2021 /PRNewswire/ -- Safehold Inc. (NYSE: SAFE) (the "Company") announced today that it has commenced an underwritten public offering to sell 2,000,000 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 300,000 shares of its common stock.

Goldman Sachs & Co. LLC, BofA Securities, J.P. Morgan, and Morgan Stanley 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 25% of the total number of shares 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 $50 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 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; 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; 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; and Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, New York 10014.

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

1114 Avenue of the Americas
New York, NY 10036
T 212.930.9400
investors@safeholdinc.com

View original content:https://www.prnewswire.com/news-releases/safehold-announces-public-offering-and-concurrent-private-placement-301381979.html

SOURCE Safehold

FAQ

What is the purpose of Safehold's recent public offering?

Safehold aims to use the net proceeds for investments in ground leases, repaying borrowings, and general corporate purposes.

How many shares is Safehold offering and what is the underwriter's option?

Safehold is offering 2,000,000 shares, with a 30-day option for underwriters to purchase up to an additional 300,000 shares.

Who are the underwriters for Safehold's public offering?

The underwriters are Goldman Sachs, BofA Securities, J.P. Morgan, and Morgan Stanley.

What share sale is Safehold conducting concurrently with its public offering?

Safehold is conducting a concurrent private placement selling shares to iStar Inc. worth $50 million.

How might Safehold's offering impact existing shareholders?

The offering could lead to dilution of existing shares, affecting shareholder value.