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REIT Sachem Capital To Sell New Preferred Stock Issue

Sachem Capital (SACH), a ‘hard money’ real estate lender has announced a new offering of cumulative preferred stock.

SACH has 3 issues of baby bonds outstanding, but this will be their 1st preferred offering. While they have 1 issue currently able to be called they have not published the intention to do so.

The preliminary prospectus can be read here.

EarlyBird was right on this one. Yield talk is in the 7.75% to 8% area–this means it will probably price at 7.625% as yield talk has tended a bit high in recent new issues.

4 thoughts on “REIT Sachem Capital To Sell New Preferred Stock Issue”

  1. From Schwab new symbol SACHPRA,

    “Sachem Capital (SACH) on Wednesday priced a public offering of 1.7 million of its 7.75% series A cumulative redeemable preferred shares at $25 per share for net proceeds of approximately $40.8 million.

    Underwriters have been granted a 30-day option to purchase up to an additional 255,000 series A preferred shares.

    The company plans to list the series A preferred shares on the NYSE American under the ticker symbol, “SACHPRA,” and expected trading will begin around July 6. The offering is set to close on June 29, according to the statement.”

  2. Why pay 7.75% when current issues at that rate are trading near 26?
    Could they be overdipping into the preferred pool?

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