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Safehold (SAFE) Upsizes & Prices Public Offering of 2.2M Shares

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Safehold Inc. (SAFE - Free Report) has upsized and priced a public offering of shares of its common stock from 2,000,000 to 2,200,000 at a public offering price of $76 per share for total gross proceeds of $167.2 million.

The underwriters have been granted a 30-day option to purchase up to an additional 330,000 common shares. Earlier, the underwriters were offered 300,000 common shares.

The offering, subject to the fulfillment of customary closing conditions, is expected to close on Sep 27, 2021.

Simultaneous with the completion, the company will privately place and sell 657,894 shares of common stock for aggregate gross proceeds of $50 million to iStar Inc. . The amount represents around 23% of the total number of shares issued in the public offering and concurrent iStar private placement (excluding the underwriters' purchase option).

Including the private placement and excluding any additional purchase made by underwriters, the company will sell total 2,857,894 shares, raising gross proceeds of $217.2 million from the offering.

Net proceeds will be used to reduce the outstanding balance under the company’s revolving credit facility. Further, amounts will be used to fund additional investments in ground leases. This will likely drive Safehold’s external growth on the back of accretive acquisition and expansion opportunities. Also, it will be used for general corporate purposes.

The common stock offering boosts the company's financial flexibility and helps efficiently meet its financial obligations. Moreover, it provides ample scope for deploying capital for long-term growth opportunities and rewarding higher returns to stockholders at the same time.

Further, shares of this Zacks Rank #3 (Hold) company have outperformed its industry over the past six months, gaining 10.5% compared with the industry’s rally of 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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