Sachem Capital Corp. (NYSE American: SACH) announces the
pricing of a registered public offering of $27.5 million aggregate
principal amount of 7.125% unsecured, unsubordinated notes due five
years from the date of issuance (“Notes”). The net proceeds of the
offering to Sachem Capital Corp. are expected to be approximately
$26.3 million after payment of underwriting discounts and
commissions and estimated offering expenses payable by the company.
The offering is expected to close on May 11,
2022, subject to customary closing conditions. The company has
granted the underwriters a 30-day option to purchase up to an
additional $4.125 million aggregate principal amount of Notes to
cover over-allotments, if any.
The Notes will rank pari passu with
all the company’s unsecured, unsubordinated indebtedness, whether
currently outstanding or issued in the future. The Notes are
expected to be listed on the NYSE American under the trading symbol
“SCCF” and begin to trade on or about May 12, 2022.
The Notes will mature on June 30, 2027, and may
be redeemed, in whole or in part, at any time, or from time to
time, at the company’s option on or after May 11, 2024. Interest on
the Notes will accrue at the annual rate of 7.125% and will be
payable quarterly, in arrears, on each March 30, June 30, September
30 and December 30 that the Notes are outstanding, beginning on
September 30, 2022.
The Notes are rated BBB+ by Egan-Jones Ratings
Company, an independent, unaffiliated rating agency. Egan-Jones is
a Nationally Recognized Statistical Ratings Organization and is
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider. Egan-Jones is also certified by the
European Securities and Markets Authority. A securities rating is
not a recommendation to buy, sell or hold securities and may be
subject to revision or withdrawal at any time.
Ladenburg Thalmann & Co. Inc., Janney
Montgomery Scott LLC, InspereX LLC and William Blair & Company,
LLC are acting as joint book-running managers for the offering.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy the securities in
this offering or any other securities nor will there be any sale of
the Notes or any other securities referred to in this press release
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of such state or jurisdiction.
A registration statement relating to, among
other things, the Notes, was filed and has been declared effective
by the Securities and Exchange Commission. The offering is being
made only by means of a related prospectus supplement and an
accompanying base prospectus forming part of the effective
registration statement, copies of which may be obtained, when
available, from: Ladenburg Thalmann & Co. Inc. by written
request addressed to Syndicate Department, 640 5th Avenue, 4th
Floor, New York, NY 10019 (telephone number 1-800-573-2541) or
by emailing prospectus@ladenburg.com; Janney Montgomery Scott
LLC, by written request to 1717 Arch Street Philadelphia, PA 19103
(telephone number 1-800-526-6397) or by
emailing prospectus@janney.com; or InspereX LLC, Attn:
Syndicate Department, 200 S. Wacker Drive, Suite 3400, Chicago, IL
60606 (telephone number 1-800-327-1546) or by emailing
prospectus_requests@insperex.com; or William Blair & Company,
LLC by written request to 150 North Riverside Plaza, Chicago,
Illinois 60606 (telephone number 1-800-621-0687) or by emailing
prospectus@williamblair.com. Copies may also be obtained for free
by visiting EDGAR on the SEC’s website at http://www.sec.gov.
Sachem Capital Corp. has filed a preliminary
prospectus supplement, dated May 5, 2022, with the Securities and
Exchange Commission, which contains more detailed description of
the Notes and the terms of the offering. The preliminary prospectus
supplement, dated May 5, 2022, and the accompanying base
prospectus, dated February 25, 2022, which contains other important
information about Sachem Capital Corp., should be read carefully
before investing in the Notes. Investors are advised to carefully
consider their personal investment objectives, the risks relating
to Sachem Capital Corp., in general, and to the Notes in
particular, and other matters relating to Sachem Capital Corp., its
business, operations and financial condition, before investing in
the Notes.
About Sachem Capital Corp.
Sachem Capital Corp. specializes in originating,
underwriting, funding, servicing, and managing a portfolio of first
mortgage loans. It offers short-term (i.e., three years or less)
secured, nonbanking loans (sometimes referred to as “hard money”
loans) to real estate investors to fund their acquisition,
renovation, development, rehabilitation or improvement of
properties located primarily in Connecticut. The company does not
lend to owner occupants. The company’s primary underwriting
criteria is a conservative loan to value ratio. The properties
securing the company’s loans are generally classified as
residential or commercial real estate and, typically, are held for
resale or investment. Each loan is secured by a first mortgage lien
on real estate. Each loan is also personally guaranteed by the
principal(s) of the borrower, which guaranty may be collaterally
secured by a pledge of the guarantor’s interest in the borrower.
The company also makes opportunistic real estate purchases apart
from its lending activities. The company believes that it qualifies
as a real estate investment trust (REIT) for federal income tax
purposes and has elected to be taxed as a REIT beginning with its
2017 tax year.
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 “anticipate,” “estimate,”
“expect,” “project,” “plan,” “seek,” “intend,” “believe,” “may,”
“might,” “will,” “should,” “could,” “likely,” “continue,” “design,”
and the negative of such terms and other words and terms of similar
expressions are intended to identify forward- looking
statements.
We have based these forward-looking statements
largely on our current expectations and projections about future
events and trends that we believe may affect our 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 our Annual Report on
Form 10-K for 2021 filed with the U.S. Securities and Exchange
Commission on March 31, 2022. 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 we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future results, level of
activity, performance or achievements. In addition, neither we nor
any other person assumes responsibility for the accuracy and
completeness of any of these forward-looking statements. We
disclaim any duty to update any of these forward-looking
statements.
All forward-looking statements attributable to
us 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 us in the context
of these risks and uncertainties.
Investor & Media
Contact:Crescendo Communications, LLCEmail:
sach@crescendo-ir.comTel: (212) 671-1021
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