Silverstein raises $200M in bonds in Tel Aviv

Offer received $592M in bids

TRD New York /
May.May 02, 2018 04:00 PM

(Credit: Silverstein Properties)

Larry Silverstein’s Silverstein Properties tendered a $200 million bond offer on the Tel Aviv Stock Exchange on Tuesday — its first on the Israeli market — and raised the full amount, at a 3.38 percent interest rate.

The developer’s offer was oversubscribed by nearly triple the asking amount, receiving $592 million in bids from investors, according to documents filed with the stock exchange. Silverstein accepted $174 million in the institutional tender, with the remaining $26 million open to private investors. The proceeds will go toward refinancing the megadevelopment firm’s planned 57-story tower in Midtown, at 520 West 41st Street.

Silverstein is entering the Israeli market with a $5.2 billion portfolio of eight massive New York City properties, including office towers at 7 World Trade Center and 120 Wall Street, the Hell’s Kitchen residential complex Silver Towers.

The interest rate is one of the lowest awarded to an American company. Moinian Group received the lowest, at 3 percent, in January of this year.

Silverstein was advised on the deal by Leader Capital Markets and Discount Capital Markets.

Ranan Cohen-Argod, CEO of a Leader Capital Markets subsidiary, said that Silverstein wanted to start small. “Silverstein wants to be more cautious in its approach to the Israeli capital markets. ‘We don’t want to come with very big numbers initially. We have to learn the Israeli market, as much as the Israeli market wants to [get to know] us.'”

Silverstein was not immediately available for comment.

Related Article


Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Larry Silverstein and the Tel Aviv Stock Exchange (Credit: Getty Images)

Institutional investors swarm Silverstein’s new TASE bonds

Real estate firms get (green) thumbs down as they jump into climate bonds

With Fed rate cut on the mind, markets enter the week riding high

(Illustration by Carl Wiens)

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

New York Community Bank CEO and president Joseph Ficalora (Credit: Facebook, iStock)

Freed by Dodd-Frank, NYCB is on the hunt for M&A deals

Lightstone Group Chairman and CEO David Lichtenstein and the Tel Aviv Stock Exchange (Credit: Lightstone and iStock)

Lightstone becomes third NYC developer in a week to plan new Tel Aviv bond issuance, targeting $73M