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

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

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

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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.