Silverstein Properties raises $30M on Israeli bond market

First issued last September, Series B now totals $96M

Silverstein Properties chairman Larry Silverstein (Getty)
Silverstein Properties chairman Larry Silverstein (Getty)

Silverstein Properties has raised $30 million on the Tel Aviv Stock Exchange, after expanding its Series B bond offering first issued in September.

The latest raise generated $30.4 million in demand, with a 3.54 percent interest rate, according to Commercial Observer.

When the offering was first issued last year, the institutional bid was vastly oversubscribed, the publication said, citing TASE filings. With the latest raise, the total Series B is now $96 million.

The bonds took a hit in February with the onset of the coronavirus pandemic. While they have rallied since then, they are still trading below pre-pandemic figures.

Several other U.S. companies, including Starwood Retail Partners and Related Companies are grappling with headwinds on the TASE.

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As of May, Starwood had seen its Israeli bonds downgraded three months in a row, to C-.

Before its latest offering, Silverstein received an AA rating from Israeli agency S&P Maalot.

American developers had flocked to Israeli bond market in hopes of finding cheap debt several years ago. Most had luck, until U.S. real estate bonds on TASE took a beating in 2018, after a series of unsettling financial disclosures from American developers. Silverstein was one of the first companies to jump back into the market, with its $50 million raise in February 2019.

[CO] — Sylvia Varnham O’Regan