Sachem Capital Completes $100M Senior Secured Notes Placement

Sachem Capital Corp, a real estate lender specializing in first-mortgage loans, has completed a $100 million private placement of five-year Senior Secured Notes due in 2030, with an initial draw of $50 million at closing and the remaining $50 million available until May 2026. These notes carry a fixed annual interest rate of 9.875%, payable quarterly, and include a 1% commitment fee on the undrawn amount. Rated 'A' by Egan-Jones, the notes are fully guaranteed by Sachem and its wholly-owned subsidiary, and proceeds will be used to repay existing debt, fund new investments, and redeem 7.75% unsecured notes maturing in 2025. Market analysts have mixed views, with an average target price of $1.88 suggesting a 58.90% upside, while GuruFocus estimates a GF Value of $0.29, indicating a potential downside of 75.42%. Brokerage consensus rates the stock as a "Hold" with a recommendation score of 2.6, reflecting cautious optimism about the company’s financial outlook. Interim CFO Jeffery Walraven emphasized that the financing enhances Sachem's financial flexibility, supporting debt repayment and expansion of lending operations.