US company Copperline Americas' has completed a NIS 330 million bond issue on the Tel Aviv Stock Exchange (TASE).
Copperline, owned by the Schlesinger family, held a higher tender for institutions last month as part of an issue, but demand totaled only NIS 310 million. Combined with the uncertainty prevailing in the capital market at the time, the remainder of the sought-for amount could not be raised in the public tender, and the company halted the process. The greater demand from the investment institutions came following the shortening of the average duration, even though the maximum interest rate in the issue was cut to 6%
Copperline owns 139 buildings with almost 3,000 rental apartments in the states of New York, Connecticut, and Florida, as well as 250 hotel rooms. These properties generate $14 million in funds from operations (FFO) annually. Copperline has no development business; it plans to invest $85 million, most of the projected proceeds from the bond issue, in acquiring the shares of its partners in some of the properties, repaying existing loans on properties, and renovating buildings for the purpose of adding 317 rental apartments and 60 stores to its portfolio.
Published by Globes [online], Israel business news - www.globes-online.com - on October 13, 2015
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