Company: SACH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001682220-25-000044
Chunk: 65

Company: Sachem Capital Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 June 30, 2025:Years ending December 31,Amount(in thousands)2025 (remaining six months)$56,364 202651,750 2027122,125 Total principal payments$230,239 Deferred financing costs(2,741)Total notes payable, net of deferred financing costs$227,498 The estimated amortization of the deferred financing costs as of June 30, 2025 is as follows:Years ending December 31,Amount(in thousands)2025 (remaining six months)$837 20261,410 2027494 Total deferred costs$2,741 

11.    Secured Notes Payable

On June 11, 2025, Holdings, an indirect, wholly-owned subsidiary of the Company, consummated a private placement of $100.0 million aggregate principal amount of Senior Secured Notes due June 11, 2030 (the "Senior Secured Notes") to various institutional investors under a Note Purchase and Guaranty Agreement (the "Agreement"). An initial draw of $50.0 million was made at closing, and the remaining $50.0 million may be drawn at any time on or prior to May 15, 2026. The Senior Secured Notes bear interest at a fixed rate of 9.875% per annum, with interest only payable quarterly on the 1st day of March, June, September and December, and include a commitment fee of 1.0% on the undrawn portion of the Senior Secured Notes. The Company paid an approximately $1.5 million original issue discount on the $100.0 million aggregate principal amount which is part of the $3.6 million of deferred financing costs recorded related to the Senior Secured Notes.  The deferred financing costs will be amortized over the five year term of the Senior Secured Notes at $0.7 million per year.The Senior Secured 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 Senior Secured 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,•Leverage and liquidity requirements,•Restrictions on additional