Benzinga | Nov 11, 2020 05:52AM EST

Safehold Priced Upsized 800K Share Public Offering @$61/Share and Concurrent Private Placement of 1.065M Shares for Gross Proceeds of ~$65M

Safehold Inc. (NYSE:SAFE) (the "Company") announced that it has priced an underwritten public offering of 800,000 shares of its common stock at a public offering price of $61.00 per share for total gross proceeds of approximately $48.8 million. The public offering was upsized from the previously announced 600,000 shares of common stock. In connection with the offering, the Company has granted the underwriters in the offering a 30-day option to purchase up to an additional 120,000 shares of its common stock. The offering is expected to close on November 13, 2020 and is subject to customary closing conditions.

Concurrently with the completion of the public offering, the Company will sell to iStar Inc. (NYSE:STAR), in a private placement, 1,065,574 shares of common stock at the public offering price for total gross proceeds of approximately $65 million. The amount to be purchased by iStar represents approximately 57% of the total shares to be issued in the public offering and concurrent iStar private placement (excluding the underwriters' option to purchase additional shares).

In total, the Company will sell a combined 1,865,574 shares, raising total gross proceeds of $113.8 million in the public offering and concurrent iStar private placement (excluding the underwriters' option to purchase additional shares).

The Company intends to use the net proceeds from the offering and concurrent iStar private placement to make additional investments in ground leases, to repay outstanding borrowings under the Company's revolving credit facility and for general business purposes.