The Real Deal New York

Yoel Goldman scores record interest rate on latest Israeli bond issuance

All Year Management raised $165M backed by Bushwick development
By Chava Gourarie | February 01, 2018 03:00PM

Yoel Goldman’s All Year Management raised $165 million in a bond issue on the Israeli stock exchange, secured by a first position on a Bushwick development at the former Rheingold Brewery site, The Real Deal has learned.

The deal will carry a 3 percent interest rate, narrowly beating the previous record for the lowest coupon awarded to a U.S. company in Israel. That record holder was Moinian Group, which raised $167 million at a 3.05 percent interest rate last month.

Goldman plans to raise a total of $188 million, or 70 percent loan-to-value on the first phase of the Bushwick development, a 433-unit building at 123 Melrose Street, valued at $269 million.

The two-building development, designed by ODA New York, was valued at $432 million and $652 million once stabilized. It will include a total of 911 apartments, 131,554 square feet of retail space, and an 18,000-square-foot park.

The $165 million, or 87 percent of the total, was raised in the institutional tender and the remaining 13 percent will be offered in a public tender later this week. If he doesn’t hit his goal of $188 million in the public tender, Goldman will offer a private tender to make up the difference, according to sources close to the deal.

Rafi Lipa and Gal Amit of Victory Consulting advised Goldman on the deal, and Orion Underwriting, also owned by the Victory team, underwrote the deal.

Deals like Goldman’s have made the Israeli debt market a popular destination for U.S. companies, and the fat fees they’re willing to pay make it a sweet deal for the companies that advise them.