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Sachem Capital Reopening Baby Bond Issue

Hard money lender, and REIT, Sachem Capital (SACH) has announced they are ‘re-opening” the currently outstanding 7.75% baby bond issue (SCCC).

No offering price, no number of shares to be sold has been announced although I expect the offering price to be $24.75 to $25/share.

This issue was originally sold on 8/26/2020. This issue was small–just 520,000 plus over allotment. The issue was reopened 10/20/2020 and another 520,000 shares were sold. The issue had been trading at $25.07/share today–the issue had just gone ex-dividend for about 48 cents a few days ago.

NOTE–this offering was announced late in the day and no negative reaction was logged this trading day in the pricing of the outstanding shares–but normally we will see a setback in prices with more shares being sold. aview made note of the offering on the Reader Initiated Alerts page today at 3:25pm.

The offering prospectus can be found here.

8 thoughts on “Sachem Capital Reopening Baby Bond Issue”

  1. SCCC was trading at $25.50 a few days ago before the dividend and now the reopening. Just bought more at $24.70.

    1. Somebody posted yesterday about the reopening. I tried to get out after market last night but was late and only got to sell 200 at $24.85 before it sank below the new issue price and I gave up. Decided to buy 400 more at $24.65 this morning. I bought my slug on previous reopening below $24.50 (not factoring in the interest payment received afterwards) So it was my turn in the barrel on this reopening.
      A little overexposed here so I hope to cull the herd some a bit come next exD.

  2. I scanned the prospectus for any provision that allows the company to postpone interest payments for five quarters. Didn’t find it. Am I miss the language that permits postponement?

    1. Postponement is only possible with jr. subordinated debt. This ranks one notch higher as senior unsecured debt.

    2. Potter–no you are not missing anything. More often than no the insurance company and utility issues carry that provision.

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