Safehold Announces Public Offering Of 6.5M Shares Of Common Stock And Concurrent Private Placement
Portfolio Pulse from Happy Mohamed
Safehold Inc. (NYSE:SAFE) has announced an underwritten public offering of 6.5 million shares of its common stock, with a 30-day option for underwriters to purchase up to an additional 975,000 shares. The company also plans a concurrent private placement to certain affiliates of MSD Partners, L.P., capped at 639,656 shares due to NYSE rules. The proceeds will be used for general corporate purposes, including repaying or repurchasing debt, making additional investments in ground leases, and funding obligations under existing ground lease commitments.
August 07, 2023 | 8:57 pm
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NEUTRAL IMPACT
Safehold's public offering and private placement could lead to a dilution of existing shares, potentially impacting the stock price. However, the intended use of proceeds for debt repayment and investment could strengthen the company's financial position.
The announcement of a public offering and private placement can lead to a dilution of existing shares, which may negatively impact the stock price in the short term. However, the company's intention to use the proceeds for debt repayment and investment could be seen as a positive move to strengthen the company's financial position in the long term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100