Company: SACH
Filing Date: 2025-06-16
Form Type: 8-K
Source: 0001682220-25-000011
Chunk: 0

Company: Sachem Capital Corp.
Filing Date: 2025-06-16
Form: 8-K
Item: Item 1.01
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Item 1.01. Entry into a Material Definitive Agreement.

On June 11, 2025, Sachem Capital Corporation Holdings, LLC, an indirect, wholly-owned subsidiary of Sachem Capital Corp. (the "Company"), consummated a private placement of $100 million aggregate principal amount of Senior Secured Notes due June 11, 2030 (the "Notes") to various institutional investors under the Note Purchase and Guaranty Agreement (the "Agreement"). An initial draw of $50 million was made at closing, and the remaining $50 million 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 include a commitment fee of 1.0% on the undrawn portion of the Notes. The Company paid an approximately $1.5 million original issue discount on the $100 million aggregate principal amount.

The Notes allow optional prepayment subject to a declining make-whole amount during the first three years, a declining prepayment premium in the fourth year, and then no make-whole payment or prepayment premium after the fourth year through maturity. Upon a change of control, holders of the Notes have the right to prepayment, if accepted, at 101% of the outstanding principal. The Agreement contains affirmative and negative covenants customary for similar secured debt instruments, including:

•Minimum asset coverage ratio,