Published on 2/29/2024 in the Prospect News Investment Grade Daily.
New Issue: Safehold sells $300 million 6.1% 10-year notes at 200 bps spread
By Wendy Van Sickle
Columbus, Ohio, Feb. 29 – Safehold GL Holdings LLC sold $300 million of 6.1% senior notes due April 1, 2034 (A3//BBB+) at a spread of 200 basis points over Treasuries on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 98.957 to yield 6.24%.
The notes will be guaranteed by Safehold Inc.
J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Truist Securities, Inc., Mizuho Securities USA LLC, Barclays, SMBC Nikko Securities America, Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the bookrunners.
Proceeds will be used to repay borrowings under the company’s 2021 revolver and for general corporate purposes, which may include making additional investments in ground leases, providing for working capital and funding obligations under existing ground lease commitments.
The New York-based company acquires, manages and capitalizes ground leases
| Issuer: | Safehold GL Holdings LLC
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| Guarantor: | Safehold Inc.
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| Amount: | $300 million
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| Issue: | Senior notes
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| Maturity: | April 1, 2034
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, Truist Securities, Inc., Mizuho Securities USA LLC, Barclays, SMBC Nikko Securities America, Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
|
| Senior co-managers: | Raymond James & Associates, Inc. and Capital One Securities, Inc.
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| Co-managers: | BNP Paribas Securities Corp., B. Riley Securities, Inc. and Citizens JMP Securities, LLC
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| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Latham & Watkins LLP and Venable LLP (Maryland law)
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| Counsel to underwriters: | Sidley Austin LLP
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| Coupon: | 6.1%
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| Price: | 98.957
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| Yield: | 6.24%
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| Spread: | Treasuries plus 200 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps until Jan. 1, 2034 and then par call
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| Trade date: | Feb. 29
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| Settlement date: | March 4
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| Ratings: | Moody’s: A3
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Cusip: | 785931AA4
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