Pinnacle Group raises $79M in fourth Israeli bond issuance

Wiener upped the offering from $52M amid high investor demand

Nov.November 07, 2016 12:45 PM

Joel Wiener’s Pinnacle Group raised close to $80 million, or 300 million shekels, in its latest bond offering on the Tel Aviv Stock Exchange.

The Penn Plaza-based investment firm, which trades in Israel under the name Zarasai Group, initially tendered an offering of up to $52 million, but increased that amount to about $79 million in response to investor appetite, according to filings with the Tel Aviv Stock Exchange. 

Demand for the bonds exceeded 830 million shekels, or $215 million, triple the amount offered. The high demand is likely due to the consistently low bond yield rates, making Pinnacle’s bonds — at an interest rate of 4.35 percent — attractive.

All five of Israel’s biggest insurance companies participated in the deal, a rare occurrence even for bond issues by Israeli companies, according to Rafael Lipa, who advised Wiener on the deal. 

It marks a shift towards in attitudes towards American companies on the Exchange, Lipa said. “The Israeli market is starting to treat American companies like Israeli companies.”

Close to 83 percent of the total was purchased by institutional investors before the public tender Monday, and the price closed at about 1 percent above market price.

TheMarker first reported on the bond raising.

The latest offering is Wiener’s fourth since 2012, with the landlord having raised around $345 million. Wiener raised $65 million in March of this year.

Pinnacle TRData LogoTINY, which specializes in rent-stabilized multifamily investments, owns more than 9,000 units across four boroughs. In the latest of several acquisitions in Flushing, the company is in contract to buy an 82-unit building on Cherry Avenue for $26 million.

Victory Consulting Group, led by Israeli financial advisers Gal Amit and Rafael Lipa, advised Pinnacle on the deal. Israeli financial services firm Poalim IBI was the underwriter on the bond issuance.

Related Articles

Gary Barnett, Central Park Tower, and the Tel Aviv Stock Exchange Bull (Credit: Wikipedia, iStock)

Extell’s Israeli bonds put on downgrade watch

RCP CEO Richard O’Toole and Related CFO David Zussman (Credit: O’Toole via Westchester Magazine and Zussman via Related)

Related tries to calm Israeli investors after market panic

Related CEO Stephen Ross (Credit: Ross by Arturo Holmes/Getty Images; Wikipedia Commons)

Related’s Israeli bonds worry auditors as crisis worsens

Denizen Bushwick at 54 Noll Street (Credit: Google Maps)

Israeli candy maker sues All Year over Rheingold development bonds

Denizen Bushwick at 54 Noll Street (Credit: iStock, Google Maps)

All Year closing in on $675M refi for Rheingold Brewery development

Denizen Bushwick at 54 Noll Street (Credit: Google Maps, iStock)

A major Bronx landlord is shorting All Year’s bonds. Are his concerns legit?

The Tel Aviv Stock Exchange bull and the William Vale

All Year clears William Vale bond hurdle on second try

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

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