Yoel Goldman’s All Year set to raise $66M in Israeli bonds

Brooklyn investor's second offering to fund projects such as Rheingold Brewery development

TRD New York /
Feb.February 26, 2016 12:55 PM

Yoel Goldman’s All Year Management TRData LogoTINY is set to complete its second Israeli bond issuance next week in a deal that could net the Brooklyn investor and developer another $66 million in proceeds.

All Year closed an institutional tender to Israeli mutual funds, pension funds and insurers Thursday that netted it roughly $35 million in immediate proceeds, according to sources with knowledge of the deal.

The issuance was characterized by outsized demand for the bonds being offered by All Year, with the firm expected to seal $44 million in immediate proceeds upon completion of a public tender to a wider array of investors early next week.

In addition, the deal sees All Year pursue a considerably different approach from most U.S. real estate firms that have raised debt in Israel up to this point. About one-third of the company’s issuance — or $22 million, if the deal reaches its maximum tender — would come in the form of bond options redeemable within three months of the deal’s completion.

That would bring the total maximum amount raised by the company to $66 million. All Year is expected to use the proceeds to fund its Brooklyn development projects – namely a residential complex at the former Rheingold Brewery site in Bushwick that Simon Dushinsky’s Rabsky Group is also developing.

All Year secured the institutional tender at a 7.9 percent interest rate, with that number expected to deviate slightly upon completion of the public tender and the finalization of the raise.

Rather than issuing an entirely new series of bonds, this latest offering is an extension of All Year’s previous $100 million issuance on the Tel Aviv Stock Exchange, which was sealed in November 2014 at a 5.85 percent coupon. With the extension, the bonds are now due to mature in November 2023.

The debt issuance is backed by a portfolio of roughly 140 properties valued at around $800 million, with the vast majority of those assets being multifamily rental properties located in Williamsburg, Bushwick and other neighborhoods in All Year’s Brooklyn stronghold.

All Year was advised on the deal by Gal Amit and Rafael Lipa of Victory Consulting, with Israeli financial services firm Poalim IBI underwriting the deal.

All Year Management did not return requests for comment.

Related Articles

Mack Real Estate Group's Richard Mack and JPMorgan's Jamie Dimon with a rendering of 123 Melrose Street (Credit: Getty Images and ODA Architecture)

Yoel Goldman sews up long-term funds for Rheingold Brewery Project

Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources

Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources

Bondholders accuse Yoel Goldman’s All Year Management of breaching securities law in suit

Bondholders accuse Yoel Goldman’s All Year Management of breaching securities law in suit

Renderings of The William Vale and Denizen Bushwick (Credit: iStock)

All Year’s rating outlook turns negative as bondholders reject two amendments

Renderings of The William Vale and Denizen Bushwick with a Tel Aviv Stock Exchange ticker

All Year eyes sale of William Vale to pay off bonds

The Tel Aviv Stock Exchange (Credit: Getty Images)

All Year’s Israeli bonds tumble on $41M loss

A rendering of the The Epic in Dallas, Texas and Westdale CEO Joe Beard (Credit: Westdale, Wikipedia)

No panic: Westdale mulls $50M Series B bond raise in Tel Aviv

From left: Gary Barnett, David Lichtenstein, Larry Silverstein and Boaz Gilad with the Tel Aviv Stock Exchange

New York developers hit restart button in Israel. But has the game reset?