As other NYC firms go quiet, Silverstein Properties prepares new Israeli bond offering

First new bond series from NYC real estate firm this year

New York /
Sep.September 06, 2019 01:00 PM
Larry Silverstein and the Tel Aviv Stock Exchange Bull (Credit: Getty Images and Wikipedia)

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

After testing the waters of the Tel Aviv Stock Exchange in February with an expansion of its Series A bonds, Silverstein Properties is preparing to make another splash in the market with a new Series B issuance.

Larry Silverstein’s firm has secured a credit rating of ilAA — the second-highest grade — from S&P Maalot for a new bond series worth up to 230 million Israeli shekels (or roughly $65 million), according to a disclosure filed with TASE on Thursday.

The ratings agency noted Silverstein’s “strong competitive position” and “high-quality portfolio” as positives, but added that it considered the geographical and sectoral concentration in Manhattan office properties to be a negative in terms of risk.

On Monday, Silverstein disclosed on TASE that it was “examining the process” of issuing a new bond series, though the date, scope and conditions had yet to be determined. The firm may issue new bonds on the basis of a shelf prospectus it filed last year prior to its $200 million debut, pending approval from the stock exchange and the firm’s board of directors.

A representative for Silverstein declined to comment.

Despite a meltdown of U.S. real estate bonds in Tel Aviv late last year, Silverstein has largely managed to stay above the turmoil. The firm’s Series A bonds were trading at 103.43 cents on the dollar as of Thursday’s close, up 6.5 percent from the start of 2019.

The firm’s Series A expansion in February was massively oversubscribed, with $130 million worth of institutional bids coming in for an offer of $51 million — a sign that Israeli investors continued to have an appetite for at least certain New York real estate bonds.

Silverstein’s Series B would be the first new bond series from a New York-based firm this year. Elsewhere in the U.S., Dallas-based Westdale Asset Management made its TASE debut in May with a $140 million bond offer.

Some other New York firms that raised funds in Tel Aviv have fared much worse. Brookland principal Boaz Gilad has lost control of several condo projects in recent months and started a new career in mortgage lending, after trading in the firm’s bonds was suspended last November.

Meanwhile, Yoel Goldman’s All Year Management has seen its Series B bonds recover from a dismal 45.6 on the dollar in February to a more respectable 89.2 today. All Year was also able to raise another $19.5 million in Tel Aviv in May with a private offering of Series E bonds to undisclosed investors.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
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
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
With major financial choices to make, Newmark receives $850M infusion
With major financial choices to make, Newmark receives $850M infusion
With major financial choices to make, Newmark receives $850M infusion
Clockwise from top left: 3-15 26th Avenue in Astoria, 1571 McDonald Avenue in Borough Park and 1160 Flushing Avenue in Bushwick (Google Maps)
These projects missed the rezoning deadline
These projects missed the rezoning deadline
NYCEEC co-CEOs Curtis Probst and Fred Lee (iStock, NYEEC)
The wait is over: C-PACE finally goes live in NYC
The wait is over: C-PACE finally goes live in NYC
Nightingale’s Eli Schwartz and 111 Wall Street (Google Maps, Nightgale)
Nightingale, Wafra secure $500M loan package to revamp 111 Wall
Nightingale, Wafra secure $500M loan package to revamp 111 Wall
1133 Sixth Avenue, 114 West 47th Street, 537 Greenwich Street and 55 Broadway (Tdorante10/Wikimedia, Durst Organization, Easter Consolidated Google Maps)
These were the largest Manhattan real estate loans in May
These were the largest Manhattan real estate loans in May
Acting Katara CEO Andrew Humphries and 355 West 16th Street (Google Maps, AHIC)
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Katara Hospitality takes over Dream Downtown’s $125M ground lease
arrow_forward_ios

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

Loading...