Sachem Capital Corp (NYSE: SACH) has successfully closed a $100 million Senior Secured Notes offering due June 2030 through its subsidiary. The Notes, rated 'A' by Egan-Jones, carry a 9.875% fixed interest rate with quarterly interest payments. The company made an initial draw of $50 million at closing, with the remaining $50 million available until May 2026. The Notes include a 1% commitment fee on undrawn amounts and are guaranteed by Sachem Capital Corp and its subsidiary. The proceeds will be used to repay existing facilities, fund new investments, and redeem 7.75% unsecured notes maturing in September 2025. Ladenburg Thalmann acted as the exclusive placement agent for this private placement to institutional investors.
Sachem Capital Corp (NYSE: SACH) ha completato con successo un'offerta di Senior Secured Notes per 100 milioni di dollari, con scadenza giugno 2030, tramite la sua controllata. Le obbligazioni, valutate 'A' da Egan-Jones, prevedono un tasso di interesse fisso del 9,875% con pagamenti trimestrali degli interessi. La societ脿 ha effettuato un prelievo iniziale di 50 milioni di dollari al momento della chiusura, mentre i restanti 50 milioni saranno disponibili fino a maggio 2026. Le obbligazioni includono una commissione di impegno dell'1% sugli importi non utilizzati e sono garantite da Sachem Capital Corp e dalla sua controllata. I proventi saranno utilizzati per rimborsare finanziamenti esistenti, finanziare nuovi investimenti e riscattare obbligazioni non garantite al 7,75% in scadenza a settembre 2025. Ladenburg Thalmann ha agito come agente esclusivo per il collocamento privato rivolto a investitori istituzionali.
Sachem Capital Corp (NYSE: SACH) ha cerrado con 茅xito una emisi贸n de Notas Senior Garantizadas por 100 millones de d贸lares con vencimiento en junio de 2030 a trav茅s de su subsidiaria. Las Notas, calificadas como 'A' por Egan-Jones, tienen una tasa de inter茅s fija del 9,875% con pagos trimestrales de intereses. La compa帽铆a realiz贸 un desembolso inicial de 50 millones de d贸lares al cierre, con los 50 millones restantes disponibles hasta mayo de 2026. Las Notas incluyen una comisi贸n de compromiso del 1% sobre los montos no utilizados y est谩n garantizadas por Sachem Capital Corp y su subsidiaria. Los fondos se utilizar谩n para pagar facilidades existentes, financiar nuevas inversiones y redimir notas no garantizadas al 7,75% que vencen en septiembre de 2025. Ladenburg Thalmann actu贸 como agente exclusivo de colocaci贸n para esta oferta privada dirigida a inversores institucionales.
Sachem Capital Corp (NYSE : SACH) a cl么tur茅 avec succ猫s une 茅mission de billets senior garantis de 100 millions de dollars, arrivant 脿 茅ch茅ance en juin 2030, via sa filiale. Les billets, not茅s 'A' par Egan-Jones, portent un taux d'int茅r锚t fixe de 9,875 % avec des paiements trimestriels d'int茅r锚ts. La soci茅t茅 a effectu茅 un tirage initial de 50 millions de dollars 脿 la cl么ture, les 50 millions restants 茅tant disponibles jusqu'en mai 2026. Les billets incluent des frais d'engagement de 1 % sur les montants non tir茅s et sont garantis par Sachem Capital Corp et sa filiale. Les fonds seront utilis茅s pour rembourser les facilit茅s existantes, financer de nouveaux investissements et racheter des billets non garantis 脿 7,75 % arrivant 脿 茅ch茅ance en septembre 2025. Ladenburg Thalmann a agi en tant qu'agent de placement exclusif pour ce placement priv茅 destin茅 aux investisseurs institutionnels.
Sachem Capital Corp (NYSE: SACH) hat erfolgreich eine Emission von Senior Secured Notes im Volumen von 100 Millionen US-Dollar mit F盲lligkeit im Juni 2030 眉ber seine Tochtergesellschaft abgeschlossen. Die von Egan-Jones mit 'A' bewerteten Notes tragen einen festen Zinssatz von 9,875 % und zahlen viertelj盲hrlich Zinsen. Das Unternehmen hat bei Abschluss eine anf盲ngliche Auszahlung von 50 Millionen US-Dollar vorgenommen, die verbleibenden 50 Millionen stehen bis Mai 2026 zur Verf眉gung. Die Notes beinhalten eine 1%ige Commitment-Geb眉hr auf nicht abgerufene Betr盲ge und werden von Sachem Capital Corp und seiner Tochtergesellschaft garantiert. Die Erl枚se werden verwendet, um bestehende Kredite zur眉ckzuzahlen, neue Investitionen zu finanzieren und 7,75% unbesicherte Notes mit F盲lligkeit im September 2025 einzul枚sen. Ladenburg Thalmann fungierte als exklusiver Platzierungsagent f眉r diese Privatplatzierung bei institutionellen Investoren.
Positive
Secured investment grade 'A' rating from Egan-Jones for the Notes
Additional $50 million available for future draws until May 2026 providing financial flexibility
Proceeds will help refinance higher-cost 7.75% notes with new 9.875% notes
Strengthens liquidity position and enables new loan origination opportunities
Negative
Higher interest rate of 9.875% compared to existing 7.75% notes
1% commitment fee required on undrawn portion of the Notes
Increased debt burden with $100 million in new secured notes
Insights
Sachem's new $100M secured notes strengthen its financial position despite higher interest costs compared to maturing debt.
Sachem Capital has secured $100 million in five-year Senior Secured Notes, with an initial draw of $50 million and the remainder available until May 2026. The 9.875% fixed interest rate represents a 2.125% premium over their maturing 7.75% notes, reflecting the current higher interest rate environment. The investment grade rating of A from Egan-Jones suggests strong confidence in Sachem's ability to service this debt obligation.
This financing accomplishes several critical objectives for Sachem: refinancing upcoming debt maturities, enhancing liquidity, and supporting loan origination growth. The structure, with interest-only payments and a 1% commitment fee on undrawn amounts, provides flexibility while minimizing immediate cash flow pressures. The company's decision to secure this funding ahead of their September 2025 note maturity demonstrates prudent liability management.
While the higher interest rate will increase Sachem's cost of capital, the secured nature of these notes likely contributed to more favorable terms than would be available through unsecured debt in today's market. As a mortgage REIT, Sachem's ability to deploy this capital into higher-yielding loans will determine whether this financing enhances or constrains profitability. The two-step draw structure balances immediate refinancing needs with growth capital, allowing Sachem to carefully time additional borrowing based on market conditions and investment opportunities.
BRANFORD, Conn., June 12, 2025 (GLOBE NEWSWIRE) -- Sachem Capital Corp. (NYSE American: SACH) (the 鈥淐ompany鈥�), a real estate lender specializing in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property, today announced that Sachem Capital Corporation Holdings, LLC, an indirect, wholly-owned subsidiary of the Company, consummated a private placement of $100 million aggregate principal amount of five-year Senior Secured Notes due June 11, 2030 (the 鈥淣otes鈥�) to various institutional investors. An initial draw of $50 million was made at closing, and the remaining $50 million must be drawn by May 15, 2026. The Notes bear interest at a fixed rate of 9.875% per annum, with interest only payable quarterly and a commitment fee of 1.0% on the undrawn portion of the Notes. Payment of the amounts due on the Notes is fully and unconditionally guaranteed by the Company and Sachem Capital Corporation Intermediate, LLC, a wholly-owned subsidiary of the Company. The Notes have received an investment grade rating of A from Egan-Jones Ratings Company, an independent, unaffiliated rating agency.
The Company intends to use the proceeds for a combination of purposes, including the repayment of existing facility balances, the origination of new investments, and to redeem its 7.75% unsecured notes maturing in September 2025.
鈥淲e are pleased with the closing of our new $100 million Senior Secured Notes due June 2030. This new financing provides significant financial flexibility for Sachem, allowing us to repay existing obligations and accelerate the origination of new, accretive loans. As we move forward, we will continue to evaluate additional capital sources to further strengthen our liquidity,鈥� said Jeffery Walraven, Interim Chief Financial Officer of Sachem Capital.
Ladenburg Thalmann served as exclusive聽placement agent for the Company. Morrison Foerster LLP served as counsel for the Company, and Morgan, Lewis & Bockius LLP served as counsel for the purchasers of the Notes.
The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, or any state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Company鈥檚 securities, nor shall there be any sale of the Company鈥檚 securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
About Sachem Capital Corp
Sachem Capital Corp. is a mortgage REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property. It offers short-term (i.e., three years or less) secured, nonbanking loans to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The Company鈥檚 primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for investment. Each loan is secured by a first mortgage lien on real estate and is personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.
Forward Looking Statements
This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. The words 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥減roject,鈥� 鈥減lan,鈥� 鈥渟eek,鈥� 鈥渋ntend,鈥� 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渕ight,鈥� 鈥渨ill,鈥� 鈥渟hould,鈥� 鈥渃ould,鈥� 鈥渓ikely,鈥� 鈥渃ontinue,鈥� 鈥渄esign,鈥� and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based primarily on management鈥檚 current expectations and projections about future events and trends that management believes may affect the Company鈥檚 financial condition, results of operations, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Company鈥檚 Annual Report on Form 10-K for 2024 filed with the U.S. Securities and Exchange Commission on March 31, 2025, as may be supplemented by the Company鈥檚 subsequently filed Quarterly Reports on Form 10-Q. Because of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the Company in the context of these risks and uncertainties.
Investor & Media Contact:
Sachem Capital Investor Relations Email:
FAQ
What is the size and interest rate of Sachem Capital's new Senior Secured Notes?
Sachem Capital's new Senior Secured Notes total $100 million with a fixed interest rate of 9.875% per annum, payable quarterly.
How will SACH use the proceeds from the $100 million Notes offering?
The proceeds will be used to repay existing facility balances, originate new investments, and redeem 7.75% unsecured notes maturing in September 2025.
What is the credit rating of SACH's new Senior Secured Notes?
The Notes received an investment grade rating of 'A' from Egan-Jones Ratings Company.
When can Sachem Capital draw the remaining $50 million from the Notes?
Sachem Capital can draw the remaining $50 million any time until May 15, 2026.
Who was the placement agent for SACH's $100 million Notes offering?
Ladenburg Thalmann served as the exclusive placement agent for the Notes offering.
An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, to receive support.
