Spencer Equity TASE offering only partially successful

Spencer Equity Group asset
Spencer Equity Group asset

After the public tender, the US real estate company has raised only NIS 291 million.

US real estate company Spencer Equity Group ended its Tel Aviv Stock Exchange public tender yesterday with only partial success, completing the IPO of an unlinked Series A shekel bond.

In the public tender, Spencer received orders to buy about NIS 90.9 million after receiving previous commitments to buy bonds for about NIS 200 million in the institutional stage.

Spencer's controlling shareholder, US Jewish developer Joel Gluck, had hoped for higher demand in the tender, which would have reduced interest on the bond, which is repayable on average in five years. But that did not happen and interest remains at 6.9% - a margin of 5.5% above government bonds of similar duration.

Spencer, which operates in the New York real estate market and specializes in leasing government subsidized apartments, had hoped to issue a $400 million bond, and was given an A rating by both Midroog and S&P Ma'alot.

Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Spencer Equity Group asset
Spencer Equity Group asset
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