Safehold signs new $2 billion replacement revolving facility

By Wendy Van Sickle

Columbus, Ohio, April 15 – Safehold GL Holdings LLC closed on a new $2 billion unsecured revolving credit facility, which replaced its existing $1.85 billion of revolving facilities on Monday, according to a press release and 8-K filing with the Securities and Exchange Commission.

The new revolver matures May 1, 2029, inclusive of two six-month extension options.

Based upon Safehold’s current credit ratings, the interest rate on the new unsecured revolving facility is adjusted SOFR plus 85 basis points, a 5-bps savings from the prior facilities. The margin can range from 80 bps to 145 bps, depending on Safehold’s credit ratings.

An accordion feature allows Safehold to increase the revolving commitments or add one or more tranches of term loans up to an aggregate amount of $500 million.

“This execution is a strong outcome for Safehold, lowering the company’s cost of capital, extending term and increasing liquidity,” said Brett Asnas, Safehold’s chief financial officer, in the release.

JPMorgan Chase Bank, NA is the administrative agent and a joint bookrunner and joint lead arranger along with BofA Securities, Inc. Goldman Sachs Bank USA, Mizuho Bank, Ltd., Royal Bank of Canada and Truist Securities, Inc.

Safehold must maintain a ratio of consolidated EBITDA to annualized fixed charges of not less than 1.15x and a ratio of total unencumbered assets to total unsecured debt not less than 1.33x.

Proceeds may be used for working capital and general corporate purposes.

Safehold is the creator of the ground lease industry based in New York.

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