Sachem Capital to Sell New Baby Bonds

Hard money lender Sachem Capital (SACH) has announced a new issuance of $25 notes.

The issue will have a due date in 2027 with an early redemption available to the company starting in March, 2024.

The notes will trade under ticker SCCE when they begin to trade on their permanent market–there will be no OTC trading.

The company currently has 4 note issues outstanding as well as 1 perpetual preferred issue–they can be seen here. The company has not mentioned a call on the 2 issues they could call.

The preliminary prospectus can be found here.

Fabrib was right on this one with EarlyBird chiming in with yield talk the 6% – 6.25% area.

5 thoughts on “Sachem Capital to Sell New Baby Bonds”

  1. Sachem Capital (NYSE:SACH) prices a registered public offering of $50.0M of 6.00% unsecured, unsubordinated notes due five years from the date of issuance for an expected net proceeds of ~$48.2M.
    Offering is expected to close on March 9, 2022.
    Underwriters over-allotment is additional $7.5M aggregate principal amount of Notes.
    The notes will rank pari passu with all SACH’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 “SCCE” and begin to trade on or about March 10, 2022.
    The Notes will mature on March 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 March 9, 2024.
    Interest on the notes will accrue at the annual rate of 6.00% and will be payable quarterly, in arrears, on March 30, June 30, September 30 and December 30 of each year they are outstanding, beginning on June 30, 2022.

  2. The reason I love this website so much is folks actually read the offerings! Great stuff, thank you 🙂

    1. sbt…I’ve got my ‘scrappy small cap’ notes mixed up. SACC is callable now and matures in 2024.

  3. Nothing mentioned in the use of proceeds section about redeeming existing notes. 9.5% coupon note CSSEN is callable in July.

    USE OF PROCEEDS
    We intend to use the net proceeds from the sale of the Notes offered under this Prospectus Supplement for working capital and general corporate purposes, i.e., to fund new real estate loans secured by first mortgage liens. Pending such use, the net proceeds from the sale of the Notes may be temporarily invested in short-term government securities and other low risk investments.

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