Loan & DebtJun 16, 2026, 04:47 PM
Safehold Closes $225M Private Placement of 30-Year Senior Notes
AI Summary
Safehold Inc.'s operating company, Safehold GL Holdings LLC, completed a private placement of $225 million aggregate principal amount of 6.615% Senior Notes due August 1, 2056. The notes feature a stairstep cash interest rate starting at 4.00% and increasing over time, with the difference accruing as paid-in-kind interest. The company intends to use the net proceeds for general corporate purposes, including debt repayment and ground lease investments, and expects an effective semi-annual yield to maturity of approximately 5.83% after a $30 million hedge gain.
Key Highlights
- Safehold's operating company issued $225 million in 6.615% Senior Notes due August 1, 2056.
- The Notes feature a stairstep cash interest rate starting at 4.00%, increasing to 6.615% by year 21.
- The difference between the stated and cash interest rate will accrue as paid-in-kind interest.
- Safehold Inc. fully and unconditionally guarantees the obligations under the Notes.
- Net proceeds will be used for general corporate purposes, including repaying secured revolver borrowings.
- The company realized a cash settlement gain of approximately $30 million from terminated hedges.
- The effective semi-annual yield to maturity on the Notes is expected to be approximately 5.83%.
Price Impact
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