By Marisa Wong and Cristal Cody
Los Angeles, Nov. 9 – Safehold Operating Partnership LP disclosed details of its $350 million of 2.85% senior notes due Jan. 15, 2032 (Baa1//BBB+) guaranteed by Safehold Inc. in an FWP filed Tuesday with the Securities and Exchange Commission.
The notes priced at 99.123 to yield 2.95%, or a spread of Treasuries plus 145 basis points.
The notes priced 25 bps low to the Treasuries plus 170 bps area spread talk, according to a market source.
The offering started in the market at $300 million.
The notes will have a make-whole call at Treasuries plus 25 bps until three months prior to the maturity date, followed by a par call.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC and Truist Securities, Inc. are the bookrunners.
Proceeds will be used to repay borrowings under the company’s revolving credit facility and for general corporate purposes.
Safehold is a real estate investment trust based in New York.
| Issuer: | Safehold Operating Partnership LP
|
| Guarantor: | Safehold Inc.
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| Issue: | Senior notes
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| Amount: | $350 million
|
| Maturity: | Jan. 15, 2032
|
| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC and Truist Securities, Inc.
|
| Lead co-manager: | SMBC Nikko Securities America, Inc.
|
| Co-managers: | Capital One Securities, Inc., Raymond James & Associates, Inc. and Berenberg Capital Markets LLC
|
| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Latham & Watkins LLP
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| Counsel to bookrunners: | Sidley Austin LLP
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| Coupon: | 2.85%
|
| Price: | 99.123
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| Yield: | 2.95%
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| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Oct. 15, 2031; par call after that
|
| Trade date: | Nov. 8
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| Settlement date: | Nov. 18
|
| Ratings: | Moody’s: Baa1
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| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 170 bps area
|
| Cusip: | 78646UAB5
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