Safehold signs new $500 million revolver, amends $1.35 billion one

By William Gullotti

Buffalo, N.Y., Jan. 9 – Safehold Inc. closed on a new $500 million unsecured revolving credit facility and amended its existing $1.35 billion revolver on Monday, according to a press release and 8-K filing with the Securities and Exchange Commission.

The new revolver matures July 31, 2025 and includes an accordion feature to increase revolving commitments or add one or more tranches of term loans up to an aggregate of $200 million.

The revolver bears interest at SOFR plus an applicable margin ranging from 90 basis points to 145 bps, depending on the company’s credit rating, according to the 8-K filing. The applicable margin was 100 bps at closing, according to the press release.

The new credit agreement requires compliance with the following financial covenants: ratio of consolidated EBITDA to annualized fixed charges not less than 1.15 to 1.00; and ratio of total unencumbered assets to total unsecured debt not less than 1.33 to 1.00.

Safehold’s existing $1.35 billion revolver was amended to update the agreement’s interest basis to SOFR from Libor.

The applicable margin for the existing revolver also ranges from 90 bps to 145, depending on ratings, and was 100 bps at closing.

JPMorgan Chase Bank, NA is the administrative agent for the new facility and the existing revolver.

JPMorgan, BofA Securities, Inc., Mizuho Bank, Ltd., Royal Bank of Canada, Sumitomo Mitsui Banking Corp. and Truist Securities, Inc. acted as the joint bookrunners and joint lead arrangers on the transaction.

Goldman Sachs Bank USA and Raymond James Bank, NA will also act as lenders under the new revolver.

Safehold is the creator of the ground lease industry based in New York.

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