By Wendy Van Sickle
Columbus, Ohio, June 23 – Sachem Capital Corp. priced $42.5 million of 7.75% cumulative redeemable preferred stock, series A, (Egan-Jones: BBB) at par of $25.00 per share, according to a company news release.
There is a $6,375,000 greenshoe.
The preferreds, which represent the initial issuance of this series, are callable after five years at par plus accumulated dividends. There is also a change-of-control call.
Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and William Blair & Co., LLC are acting as joint bookrunning managers for the registered offering.
The preferreds are expected to be listed on the NYSE American under the symbol “SACHPrA.”
Proceeds are for working capital and general corporate purposes and to fund new real estate loans secured by first mortgage liens. In addition, proceeds may be used to acquire other real estate finance companies or existing mortgage loan portfolios.
Sachem is a Branford, Conn.-based real estate finance company.
| Issuer: | Sachem Capital Corp.
|
| Issue: | Cumulative redeemable preferred stock, series A
|
| Amount: | $42.5 million
|
| Greenshoe: | $6,375,000
|
| Maturity: | Perpetual
|
| Bookrunners: | Ladenburg Thalmann & Co. Inc., Janney Montgomery Scott LLC and William Blair & Co., LLC
|
| Co-manager: | Aegis Capital Corp.
|
| Dividend: | 7.75%
|
| Price: | Par of $25.00
|
| Yield: | 7.75%
|
| Call option: | After five years
|
| Pricing date: | June 23
|
| Settlement date: | June 29
|
| Rating: | Egan-Jones: BBB
|
| Distribution: | SEC registered
|
| Expected listing: | NYSE American: SACHPrA
|
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