Sachem Capital closes $100M of senior secured notes

Sachem Capital (SACH) consummated a private placement of $100M aggregate principal amount of five-year Senior Secured Notes due June 11, 2030 to various institutional investors. An initial draw of $50M was made at closing, and the remaining $50M must be drawn by May 15, 2026. The Notes bear interest at a fixed rate of 9.875% per annum, with interest only payable quarterly and a commitment fee of 1.0% on the undrawn portion of the Notes. Payment of the amounts due on the Notes is fully and unconditionally guaranteed by the Company and Sachem Capital Corporation Intermediate, a wholly-owned subsidiary of the Company. The Notes have received an investment grade rating of A from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. The Company intends to use the proceeds for a combination of purposes, including the repayment of existing facility balances, the origination of new investments, and to redeem its 7.75% unsecured notes maturing in September 2025.