Real estate finance REIT Sachem Capital (SACH) has announced a new issuance of $25 baby bonds.
These notes will have an early redemption starting in 12/2023 with a final maturity in 2026.
The company has placed this in the prospectus–
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. We may also use the net proceeds from the sale of the Notes to redeem some or all of the June 2024 Notes and/or the December 2024 Notes, to acquire other real estate finance companies or mortgage loan portfolios, although at this time no such acquisitive transactions are pending.
730Cap was right on top of this new issue with EarlyBird chiming in yield talk in the 6.00% to 6.25% area with BBB+ rating from Egan Jones (don’t confuse this rating with those from S&P, Moody’s or Fitch).