NEW YORK--(BUSINESS WIRE)--Safety, Income and Growth, Inc. (NYSE: SAFE) announced today that is has closed its $250 million initial public offering and concurrent private placement, raising $246 million in total net proceeds. The Company sold an aggregate of 12.5 million shares at a price of $20.00 per share in the transactions. Combined with 5.7 million shares previously owned by iStar, GIC and Lubert Adler, SAFE has total outstanding shares of 18.2 million. The Company has granted the underwriters a 30-day option to purchase up to an additional 1.5 million shares.
“We are bringing ground net leases to the forefront with the first publicly traded company exclusively focused on the property type,” said Jay Sugarman, chairman and chief executive officer. “Our national footprint, fully-integrated platform and creative approach to structuring should allow us to expand the use of GNLs to more customers in more places in the top US markets.”
SAFE saw significant investment from insiders who purchased shares at the same price as the public:
- SAFE’s largest shareholder and manager, iStar, purchased 2.25 million shares bringing its total position to 5 million shares
- Jay Sugarman, chairman and chief executive officer, purchased 50,000 shares
- Geoffrey G. Jervis, chief operating officer and chief financial officer, purchased 25,000 shares
- Nina Matis, chief investment officer and chief legal officer, purchased 20,000 shares
- All other SAFE directors and iStar employees purchased in aggregate approximately 65,000 shares
The Company also closed on a $300 million secured revolving credit facility provided by Bank of America Merrill Lynch, JPMorgan and Barclays. The facility has an accordion feature to increase its capacity up to $500 million.
“Our IPO leaves us well-positioned to address the significant market opportunity we’ve identified in the GNL sector,” said Geoffrey G. Jervis. “With nearly $750 million of cash and credit facility capacity, we have ample dry powder to pursue our growing $900 million investment pipeline.”
Safety, Income and Growth, Inc. (NYSE: SAFE) is the first publicly traded company that focuses on acquiring, owning, managing and capitalizing ground net leases (GNLs). The Company seeks to provide safe, growing income and capital appreciation to shareholders by building a diversified portfolio of high quality GNLs. The Company is managed by its largest shareholder, iStar Inc. Additional information on SAFE is available on its website at www.safetyincomegrowth.com.
