Klein Group refinances debt with $57M bond swap in Israel

Retail landlord has a total of $95M in debt on Tel Aviv Stock Exchange

New York /
Dec.December 20, 2017 08:45 AM

Jacob Klein and 135 East 83rd Street (Credit: Klein Group)

Jacob Klein’s Klein Group, a middle-market retail investor, has refinanced its debt on the Tel Aviv Stock Exchange with a $57 million bond swap.

The move gives Klein a longer timeline in which to pay down the debt, which now matures in 2025.

The deal offered bondholders of Klein’s series A bond, in which he raised $55 million at a 6.4 interest rate, for series B bonds, at a 1.07 premium. The series B bonds carry a 6.6 percent interest rate, and will be paid down in installments starting in March 2018.

Klein Group is based in Florham Park, New Jersey, and has assets primarily in its home state, along with New York and Pennsylvania. Their New York assets include retail condominium units on the Upper West Side, Tribeca and the Financial District. Recent acquisitions include a 12,000-square-foot retail condo at 135 East 83rd Street, where D’Agostino’s is a tenant, for $16 million, and the retail unit at the base of the 29-story condo at 301 East 50th Street.

Klein is one of a slew of companies to restructure their bonds this way in recent months. Others include Yoel Goldman’s All Year Management, David Marx’s MDG, Boaz Gilad’s Brookland Capital and Abe Leser’s Leser Group, some of whom may have refinanced to evade the consequence of not meeting their bond covenants.

Yossi Levi and Yonatan Cohen of InFin advised Klein on the deal.


Related Articles

arrow_forward_ios
Anita Durst and images of Chashama (Photos via Getty, Chashama)
Durst-backed nonprofit puts startups into empty storefronts
Durst-backed nonprofit puts startups into empty storefronts
Berkshire Bank headquarters in 4 East 39th Street (Google Maps)
Major FiDi landlord resigns as bank chairman after stock windfall
Major FiDi landlord resigns as bank chairman after stock windfall
Nationally, just under one-third of office workers have returned to the office spaces they occupied before the pandemic. (iStock)
Employers face uphill battle luring staff back to the office
Employers face uphill battle luring staff back to the office
The Closing: Janice Mac Avoy
The Closing: Janice Mac Avoy
The Closing: Janice Mac Avoy
Washington Prime Group CEO Lou Conforti (Twitter)
Washington Prime Group files for Chapter 11 bankruptcy
Washington Prime Group files for Chapter 11 bankruptcy
Renderings of Greenpoint Landing in Greenpoint, 141 Willoughby Street in Downtown Brooklyn and 45-57 Davis Street in Long Island City (Photos via OMA, SLCE Architects and J Frankl Architects)
These were the top outer-borough loans in May
These were the top outer-borough loans in May
The New York Life Sciences and Biotechnology Center at First Avenue and 41st Street (NY Life Sciences)
Life sciences leasing breaks annual record in five months
Life sciences leasing breaks annual record in five months
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...