Sachem Capital Corp. (SACH) last week closed registered public offering of 7.75% unsecured, unsubordinated notes due 2025. The Notes issued are comprised of an aggregate principal amount of $13.0 million. The company, after paying several expense including estimated offering expenses and underwriting discounts and commissions, is likely to be getting net proceeds of about $12.3 million.

The company also allowed the underwriters with a 30 days option period to exercise purchasing of additional Notes. Those will include $1.95 million aggregate principal amount of Notes and are for covering any over allotments. The option of exercising over-allotment will expire on September 27, 2020.

All the new Notes rank pari passu with the company’s existing as well as future unsecured, unsubordinated indebtedness in all respects. The company registered the Notes on NYSE American under the trading symbol “SCCC” that began trading last week.

The Notes have a maturity date of September 30, 2025 and are redeemable in whole or in parts, any time at the company’s discretion on or after September 4, 2022. The company will pay an annual interest of 7.75% payable quarterly in arrears. Beginning December 30, 2020, company will pay interest on each March 30, June 30, September 30 and December 30 on all Notes which will be outstanding at that time.

Sachem is intending utilizing the net proceeds so received from the sale of the Notes for purposes including capital and general corporate expenses. The company will primarily use those funds to issue new real estate loans against first lien mortgages. Funds could also be utilized to make acquisitions like purchasing other real estate finance companies or taking over existing mortgage loan portfolios. Currently there is no such deal in pipeline.

Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and National Holdings Corporation subsidiary National Securities Corporation were the joint lead book-runners for the Notes’ offering. Aegis Capital Corp. was co-manager for the same.